Generation-X Feels Unprepared for Long-Term Care Costs and the Future, Survey Finds
“As the first group of Generation-X approaches age 50, they begin to think about financial planning for retirement,” said AHIP President and CEO
When looking ahead to the future, many survey respondents correctly believe their chances of needing long-term care services are high, with 68 percent saying they feel it is likely they will need this type of care in the future. About 70 percent of adults who reach age 65 will need some type of long-term care. Yet many are unaware that long-term care insurance can protect their retirement nest eggs and other assets, with 53 percent of respondents saying they are not very or not at all knowledgeable of this coverage.
Generation-X understands the value of planning for their financial futures, but many underestimate the cost of long-term care, with half of respondents estimating the average annual nursing home stay is between
Nearly 60 percent mistakenly believe their current policies provide coverage or they do not know if they are already covered. Long-term care insurance provides coverage for long-term care, and it also preserves the independence so highly valued by Generation-X, as it allows the beneficiary to choose the setting in which care is received.
The current economic downturn has only worsened their financial situations, with 57 percent of respondents stating they have been negatively affected by the economic downturn. Of those affected by the economy, 51 percent say they have been forced to stop planning for their long-term care, and another 33 percent are spending less time planning for long-term care.
In order to finance their long-term care, 36 percent say they would rely on government assistance, such as Medicaid, to provide for long-term care. While Medicaid often provides coverage for long-term care services to qualifying low-income Americans, many people have to spend down their savings to the point of poverty in order to quality for this assistance. Others say they would use their retirement savings (26 percent), sell their assets (24 percent), rely on other insurance products (22 percent), or rely on family and friends (13 percent).
More information about this survey is available at www.MyLifeMyFamily.com. This consumer-friendly website provides consumers with basic information about long-term care insurance, including videos that feature real-life stories from current policyholders, an interactive online quiz, and additional resources on the value long-term care insurance provides.
About the survey:
The survey was conducted by StrategyOne from
America’s Health Insurance Plans – Providing Health Benefits to More Than 200 Million Americans
(1) “Caregiving Across the States,” Family Caregiver Alliance,
SOURCE America’s Health Insurance Plans