According to a new survey released by Harris Interactive for Nationwide Financial Services, people are significantly underestimating the costs associated with long-term care.
The people who were surveyed were “Baby Boomers,” a demographic defined by the post–World War II “baby boom,” born between 1946 and 1964. They consistently estimated long-term care costs to be just under $79,000. But Nationwide Financial Services projects costs for nursing-home care will reach $265,000 per year by 2030.
Costs for nursing home care have consistently increased at least 4 percent every year since 1974, according to John Carter, the president and CEO of Nationwide Financial. He believes that current nursing home costs cannot “even come close” to what that care will cost by the time the youngest Boomers reach retirement age. And those Boomers, like so many before them, are not prepared.
Though most survey respondents reported that they have some sort of plan in place for retirement, a shocking 57 percent admitted that they did not have any plans in place for long-term care.
Odds are not in their favor. At least 44 percent of people who reach 65 find themselves in a nursing home at least once in their lives. How that care will be financed can and does make a significant difference in the quality of care, and personal savings and retirements funds are often drained to cover those costs. But with long-term care planning, that does not have to be the case.
Christopher J. Berry is an elder law attorney Dedicated to helping seniors, veterans and their families navigate the long-term care maze. To learn more visit http://www.theeldercarefirm.com/ or call 248.481.4000