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Benefits July 2, 2001
Boomers Unprepared for Long Term Care
July 2, 2001 (PLANSPONSOR.com) Despite rapidly
approaching retirement, only 7% of baby boomers have
purchased long-term care insurance.
Reported by Camilla Klein
That may not be surprising, since less than a quarter (24%) have ever had anyone recommend they purchase it, according to a survey.
The survey, commissioned by the GE Center for Financial Learning, also found that three quarters of the sample did not know the cost of long-term care insurance premiums, with the majority overestimating the cost by more than 300%.
In addition, the survey found that:
- over 70% of respondents are concerned about outliving their financial resources, and
- some 85% are highly concerned with maintaining control over care options and where they live.
Taking Responsibility
In terms of bearing the responsibility for their long-term care:
- seven out of ten respondents believe that they, themselves, should be most responsible, a finding reinforced by the 77% that said their children should plan little or no role
- still, 14% believe that the government should be responsible.
The study, Secure Tomorrow’s Autonomy Today, surveyed almost 1,000 Americans on aging, long-term care resources, motivators and barriers to retirement planning, and future long-term care recommendations.