Children born in the US between 1946 and 1964 are known as the Baby Boom Generation. The 76 million baby boomers represent approximately 28% of the population. 40% of this generation will live to be 90. 70% of people above the age of 65 will need some kind of Long Term Care Services at some point in their lives.
When this generation reaches retirement at 2030 the elderly population will be double what it is today. The oldest baby boomer will turn 65 in 2010 and the youngest by 2030. The youngest baby boomer turns 85 by 2050 when the need for long term care is felt the most. 30% of Baby Boomers believe that they have long term care coverage. Unfortunately, those who can afford to purchase a policy have not done so yet.
A big portion of seniors needing long term care in the future consists of baby boomers not planning for this need today which will lead to financial drain on the government. 43% of nursing home care costs for seniors come from Medicaid. In the future Medicare and Medicaid will be taking more out of the system when fewer workers in the workforce will be contributing (tax).
Today’s life style has made informal home care a less of an option for the baby boom generation than it was for their parents. Demographic changes like smaller family size, work related mobility, increase in divorce rates and increase in people choosing to remain single have made informal home care more difficult.
The baby boom generation needs to realize the possibility of needing some kind of long term care at some point in their life. Long term care should become a key component of retirement planning to ensure financial peace of mind in old age. Admitting that “this can happen to me” and buying a long term care insurance policy at an earlier age will be cheaper than later. Not expecting the government or family to meet your long term care needs will help you choose a policy that best fits you. For financial freedom and peace of mind choose a long term care insurance policy with the maximum coverage.
Learn more about long term care insurance. Stop by Maria Smith’s site where you can find out all about long term care health insurance and what it can do for you.
Tags: health, health insurance, insurance, long term care, long term care health insurance, long term care insurance, retirement