COLUMBUS, Ohio--(BUSINESS WIRE)--

While facing the prospect of living more years in retirement, women nearing retirement underestimate how much they will need to pay for their future health care costs even more so than men nearing retirement, according to a Nationwide Financial survey released today.

According to the survey conducted by Harris Interactive of 1,250 Americans with at least $250,000 in household assets, women close to retirement estimate they will spend $4,624 each year on health care beyond what Medicare covers. Thats 21 percent less than the $5,882 men nearing retirement estimate they will spend each year on things like premiums, copayments and deductibles. However, both are way off. A 2012 study found a 65-year-old couple retiring today would need $240,000 to cover medical expenses during their retirement years and that doesnt include long-term care costs. 1

The fact is women live longer than men, which means they will spend more time in retirement and that places women at a greater risk of outliving their retirement assets, said John Carter, president of sales and distribution for Nationwide Financial. It also may increase their chances of incurring long-term care costs during their golden years. Thats why its especially important for women to plan for health care costs in retirement.

According to the survey, nearly half of both women and men say they are terrified of what health care costs may do to their retirement plans. Yet, women respondents nearing retirement are much more likely than men respondents to say they have not estimated:

On average, women estimate that Medicare will cover 65 percent of their annual health care costs. But, similar to men respondents, when asked how they came to this percentage, 85 percent either guessed or did not know. Only 2 percent said they were told this by a financial advisor.

Women are also slightly more likely than men to say they are somewhat unconfident to not at all confident in their plan to live comfortably in their retirement years (46 percent vs. 39 percent men).

Opportunity for advisors

While 65 percent of women have discussed their retirement with a financial advisor of those who have, only one in 10 talked about how much they should expect to pay in health care costs apart from Medicare (compared to one in four men).

Of those who have discussed retirement with a financial advisor, 77 percent of women say they were helpful to very helpful estimating health care costs in retirement (63 percent men) and a whopping 86 percent say they were helpful to very helpful discussing the role Medicare will play in their retirement (52 percent men).

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Women Nearing Retirement Underestimate Future Health Care Costs More Than Men