When most people think about retirement planning, they focus on the big-ticket items: housing, food, transportation, and maybe travel. But as the latest findings from the Deft Research 2025 Age-In Study conducted for CNO Inc. the parent company of Bankers Life reveal, many Americans are overlooking a critical set of expenses that could significantly impact their quality of life in retirement.
The Planning Gap: What Gets Missed
According to the study, while over 70% of Age-Ins (those nearing Medicare eligibility) consider essentials like housing, food, and car insurance in their retirement planning, far fewer account for healthcare-related costs that are just as vital:
- Only 26% consider the cost of assisted living.
- Just 25% plan for medical equipment.
- A mere 22% think about hearing aids.
These are not fringe expenses. They are often necessary for maintaining independence, mobility, and quality of life in later years. Yet they remain underrepresented in most retirement plans.
Why These Costs Matter
Unlike housing or groceries, many of these overlooked expenses are not predictable or consistent. A sudden need for a hearing aid, a walker, or in-home care can arise unexpectedly and Medicare doesn’t always cover them fully. Assisted living, for example, is one of the most expensive out-of-pocket costs retirees may face, and it’s rarely covered by traditional Medicare plans.
Who Plans Better?
The study found that individuals who work with a financial advisor or have higher incomes are significantly more likely to consider a broader range of retirement expenses. In contrast, those who expect Social Security to be their main source of income are less likely to plan for these additional costs.
This suggests that financial literacy and access to professional guidance play a major role in how comprehensively people prepare for retirement.
The Role of Medicare Planning
Healthcare costs are a major component of retirement spending, and yet many Age-Ins underestimate their future needs. The study shows that even among those who delay care due to affordability concerns, there’s no significant increase in planning for these costs once they reach Medicare eligibility.
This disconnect highlights the need for better education and tools to help future retirees understand what Medicare does—and doesn’t—cover, and how to prepare for the gaps.
What You Can Do
If you’re approaching retirement, here are a few steps to help close the planning gap:
- List all potential healthcare-related expenses, including dental, vision, hearing, and long-term care.
- Consult a financial advisor to build a more comprehensive retirement plan.
- Explore supplemental insurance options like Medigap or long-term care insurance.
- Review your Medicare options carefully, especially if you have chronic conditions or anticipate needing specialized care.
Final Thoughts
Retirement should be a time of security and peace of mind—not financial surprises. By expanding the scope of your planning to include often-overlooked costs, you can better protect your future self and enjoy the retirement you’ve worked so hard to earn.
Want more? You may be interested in our blogs, The Hidden Costs & Concerns of Baby Boomers Supporting Their Adult Children and Preserving Wealth and Dignity: Long-Term Care Planning for Seniors
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