Dallas, Texas – Facing the harsh reality of dwindling finances in retirement, Judi and David Koncak never expected to be in a position where they may not have much to leave behind for their children. Despite both being college graduates and David having a successful business that allowed Judi to stay home and raise their children, a series of health challenges drained their savings significantly.
Dreams of spending their golden years on a Hawaiian beach were shattered when David suffered a stroke, surgeries, and prostate cancer, draining their finances. Now, at 83, Judi is back to part-time work earning $15 an hour and selling items at discounted rates to make ends meet. Their savings exhausted, she fears that their home may be all that’s left for their children once repairs are completed.
The Koncaks’ struggles with health care costs are not unique. As older Americans face rising health care expenses, the much-anticipated wealth transfer from baby boomers to younger generations may not materialize as expected. With one-third of Medicare beneficiaries finding it difficult to afford health care, the Koncaks’ story sheds light on a broader issue affecting many Americans.
Kathy Kiersted, another individual facing steep health care costs, pays over $1,500 monthly in health premiums with her husband. Despite consulting part-time to cover expenses, she acknowledges that the financial burden has impacted their ability to assist their daughter with her upcoming wedding. Like the Koncaks, the Kiersteds are part of the middle class struggling with soaring health care costs.
With health care costs skyrocketing, the myth of a great generational wealth transfer may be challenged. Researchers predict up to $84 trillion in assets to be transferred over the next two decades, with Gen X, millennials, and Gen Z expected to inherit a significant portion. However, concerns about long-term care costs diminishing inheritances highlight the financial strain facing many families.
As health care expenses continue to rise, many retirees are left grappling with daunting financial challenges. Strategies such as long-term care insurance and annuities are options for some to mitigate costs, while others find themselves relying on Medicaid or self-pay options. The stark reality is that health care expenses can quickly deplete savings, leaving little behind for future generations.
In the face of financial uncertainty, individuals like the Koncaks and the Kiersteds must make difficult decisions to make ends meet. Selling belongings, working part-time, and seeking assistance are just some of the strategies they employ to navigate the complex and often overwhelming landscape of health care costs. As they confront these challenges, the future remains uncertain, raising concerns about the sustainability of retirement savings and the ability to leave a financial legacy.