Baby Boomers Brace for Rising Health Care Costs

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Baby Boomers Brace for Rising Health Care Costs
 Allstate 'Retirement Reality Check' Identifies Boomers' Retirement Fears For
                             Second Year In A Row

    NORTHBROOK, Ill., Dec. 3 /PRNewswire-FirstCall/ -- As health care costs
continue to increase, Baby Boomers are anxious about how high those costs
actually will climb.  When asked to rate their top fears about retirement in
Allstate's "Retirement Reality Check" survey, 67 percent cited rising health
care costs, up from 39 percent in 2001.
    The second annual survey also revealed that Boomers' fears of failing
health are on the rise:  while only a quarter (27 percent) admitted this
concern in 2001, almost half (49 percent) now worry that they will get sick
during retirement.  Surveyed Hispanic Boomers are even more worried, at a rate
of 58 percent.
    Other retirement fears revealed by the survey include not having enough
money (52 percent) and Social Security no longer being around (47 percent).
Only 10 percent of those surveyed said they had no fears at all.

    Bitter pill to swallow
    With Boomers feeling anxious about the rising cost of health care and
falling ill during retirement, it's no surprise that more than one-third (36
percent) of those surveyed expect health care costs to be their biggest
expense in retirement.
    "Health care costs are going nowhere but up, and it looks as if that trend
will continue," said Peggy Dyer, senior vice president of strategy and
marketing, Allstate Financial, a business unit of The Allstate Corporation.
"One way to help alleviate this fear is to work with a financial advisor to
construct a realistic financial plan.   A plan can help ensure there will be
cash on hand should you fall ill unexpectedly."
    With employers paying less, consumers are footing a heavier bill for
health care.  A recent study by Hewitt Associates found that employees are
being asked to pay more for prescription drugs and specialty-care office
visits.  In addition, the Hewitt study noted that the average HMO premium
increased 15.3 percent in 2002.
    "In an American Viewpoint poll following the November election, voters
ranked health issues as a high priority area for the new Congress," said Dyer.
"But those approaching retirement can't sit back and wait for the government
to take action.  People must plan ahead for health care costs so that they're
not caught unprepared."

    An ounce of prevention ...
    Even though Boomers appear resigned to spending more on health care, it
appears that they haven't given up on healthy lifestyles.  When asked to name
the leisure pursuits they plan to enjoy during retirement, one-third (34
percent) ranked exercise as a top activity.  Among African-American and
Hispanic survey respondents, the numbers were significantly higher:
53 percent and 54 percent, respectively.
    The second annual Allstate "Retirement Reality Check" survey was created
by Allstate in conjunction with Harris Interactive.  Using a random digit
dialing methodology, Harris Interactive polled 1,400 people born between 1946
and 1961, with household incomes ranging from $35,000 to $100,000.  A sample
of 200 Hispanics and 200 African Americans were interviewed as part of the
total sample surveyed.  The margin of error is plus-or-minus 3.1 percent for
the general population (n=1000), and plus-or-minus 6.9 percent for information
specific to Hispanics and African Americans.

    The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer.  Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate provides insurance products to more than 16
million households and has approximately 12,500 exclusive agents and financial
specialists in the U.S. and Canada.  Customers can access Allstate products
and services through Allstate agents, or in select states at allstate.com and
1-800-Allstate. Encompass(SM) and Deerbrook(R) Insurance brand property and
casualty products are sold exclusively through independent agents.  Allstate
Financial Group includes the businesses that provide life insurance,
retirement and investment products, through Allstate agents, workplace
marketing, independent agents, banks and securities firms.
SOURCE Allstate Corporation
http://www.allstate.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/109885.html
CONTACT:
Laura Margolis of Allstate Media Relations,
+1-847-402-5600