For many older people and their families, particularly those dealing with conditions such as Alzheimer鈥檚 or cancer that often require long-term, pricey medical care, running out of money is a nagging concern.
Families are right to be worried, according to a new study that analyzed data from nearly 1,200 people who died between 2010 and 2012 and who participated in the University of Michigan鈥檚 .
Among people who were age 85 or older when they died,聽 one in five聽had no assets left apart from their homes, and 12 percent had no assets left at all, only income from sources such as Social Security or pensions. The found that those who died younger were even worse off. Among people who died between age 50 and 64, 30 percent were without assets聽and 37 percent had only聽their homes.
Families where someone died at a relatively young age tend to have lower incomes and assets, says Sudipto Banerjee, a research associate at EBRI and the study鈥檚 author.
鈥淧eople with lower assets and income tend to be in worse health,鈥 he says, noting that many studies have found a correlation between health and wealth, showing that wealthier people tend to live longer than poorer people.
The EBRI study didn鈥檛 examine the reasons people鈥檚 finances were often depleted at death, so there鈥檚 no way to know the extent to which health care, specific illnesses or insurance coverage played a role.
Financial experts have long cautioned that medical care for seniors is an expensive concern, partly because some care related to Alzheimer鈥檚 disease, for example, is not covered by insurance. In addition, even with Medicare coverage and private insurance,聽seniors still can face large out-of-pocket expenses for major illnesses. According to an , a 65-year-old couple who retired in 2014 would need $220,000 to cover their health care costs during retirement.
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