The Baby Boomers, who dreamed of being forever young and enjoyed an economic reality more rewarding that any previous generation, are flowing into retirement.
How well prepared are they, this healthy, wealthy and educated group of attention getters? Bankers Life Center for a Secure Retirement surveyed a representative group and uncovered some disturbing information.
The boomers can expect to live a long time, a factor widely recognized as a two-edged sword. Longevity appeals to most of us, but you’d better have the money in place to keep the lights on, to say nothing of keeping up with medical expenses. The survey discovered that while 45% of respondents expect to need long-term medical care during their senior years, either at home, in a medical facility or in nursing home, only 18% have financially prepared for that eventuality.
Even this dire result may be excessively optimistic. According to the U.S. Department of Health and Human Services, around 70% of people retiring today will need some form of long-term care during their senior years. It seems the Baby Boomers are overestimating their ability to resist the ravages of aging.
The survey found that among middle-class boomers, 74% think they have enough money to pay for healthcare in retirement. Disturbingly, some 79% have failed to save or invest any money at all to pay for long-term medical costs.
Boomers are better prepared for dying, it seems: 81% have taken steps to secure their estate once they finally pass away. Whether these plans are adequate to the task is not stated, but any amount of legacy planning is usually better than nothing.
For more information, please read:
Baby Boomers More Prepared For Dying Than Living | Financial Advisor