Spiraling Health Care Costs Cause Sharp Rise in National Retirement Risk Index

Business Wire, Feb 19, 2008

Tips for avoiding retirement planning pitfalls

Ballew said there are a number of steps consumers can take to better prepare themselves for retirement and rising costs, especially in health care.

* Living healthier today can reduce medical costs in retirement

"When planning for retirement, one's health is an extremely valuable asset that is often overlooked, but it can have a significant impact on the Golden Years, especially as individuals expect to live longer and therefore incur greater health care costs," said Ballew. "Americans need to ensure they are taking into account health care costs when planning for retirement and, further, that they are taking measures now - such as proper diet, regular exercise, and check-ups - to maintain their best health possible later."

Nationwide Better Health, a subsidiary of Nationwide, is a leading provider of health and productivity management solutions aimed at lowering health care costs, increasing productivity and improving the quality of life for employers and their employees.

* Workers must take responsibility for their financial health

Ballew said workers must take personal responsibility for their retirement planning, beginning with assessing their financial situation. He recommends consumers seek professional help with important financial matters such as planning for retirement.

"Financial professionals are not just for the wealthy," Ballew said. "Hiring a licensed, qualified investment professional whose business and personal styles suit your needs is a wise decision for most households. Nationwide has a group of financial professionals consumers can consult with for free. They can call our Consumer Solutions Center at 888-543-3756, or send an e-mail to lifepln@nationwide.com."

While the retirement crisis is very real, the situation isn't hopeless. If they take action now to increase their savings and investments, American workers can ensure their golden years are truly golden, says Ballew.

"If a person saved $25 each week for 40 years, and if their savings included a 5% yield, they would have around $165,000 saved! That's the 'magic' of compound interest over time and only one example of how workers can save," he said. "There are lots of investment products available today, either through an employer, a bank, credit unions and so on. A financial professional can help consumers sort through the myriad choices to find what best suits their needs."

* Take advantage of resources

"There are countless resources available to help, from investment professionals to online planning aides, like Nationwide Financial's free, online RetirAbility Check," he said.

RetirAbility Check(SM) (www.nationwide.com/retirabilitycheck) is an interactive resource that provides people with a basic score - called an R-Score(SM) - to illustrate how financially prepared they are for retirement. It was developed to help take the guesswork out of planning. RetirAbility Check(SM) builds on the Index findings through R-Score(SM), which is based on data derived from the Index.