STUDY: Baby Boomers are more financially prepared for death than life

Research finds nearly half of middle-income boomers believe they will need long-term care in the future, almost 80 percent don’t have long-term care savings to ensure this need is met in their retirement.

The urgency for boomers to have a plan for their retirement care is growing as more and more retire every day and get closer to the age when they or their partner will likely need long-term care.

Bankers Life president Scott Goldberg said they've taken more steps to take care of their funerals than their retirement.

"The cost of long term care is estimated to be nearly $200,000 and the likelihood of needing care is about 70 percent," said Goldberg.

He says the most efficient route to plan for long-term care, is to buy a private insurance policy.

"Boomers are not getting their heads and finances wrapped around the potential cost of their long term care," said Goldberg.

He said if Boomers don't get prepared now and get with a financial advisor, the burden will fall to their family.

Many middle-income Baby Boomers didn’t know how much home health aide, or nursing home care cost.

Additional key findings include:

  • 81 percent of middle-income boomers have made at least one formal preparation for when they pass away
  • only 32 percent have a plan for how they will receive care in retirement
  • Just 18 percent of boomers report that planning for retirement care is a high priority
  • More than half (56 percent) of boomers mistakenly believe that Medicare will pay for their ongoing long-term care.

Elderly Hands

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