Long-Term Care May Be Road Block for Retiring Baby Boomers

Tuesday, June 3rd, 2008
This post was written by Melanie Matthews

Even as many baby boomers put their financial plans into place, most are ignoring the potentially devastating expenses associated with long-term care, according to a new Lincoln Retirement(SM) Institute (LRI) survey. Take-charge baby boomers are knowingly ignoring the signs of a significant retirement detour. The so-called “overconfidence effect” keeps the baby boomer generation from acknowledging the emotional and financial tolls long-term care challenges can bring.

  • Fifty-nine percent of boomers think others should prepare by purchasing insurance for the possibility of needing long-term care, yet only 35 percent say they are using insurance as one of their own preparations.
  • When asked what they are doing to prepare themselves for potential long-term care needs, boomers are more likely to say they are focused on such unreliable measures as maintaining a healthy lifestyle (54 percent), investing to get the highest possible return (40 percent) and saving additional money to cover long-term care (39 percent) instead of heeding their own advice to other boomers and purchasing insurance.

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