According to the Council of Life Insurers Research findings, between 1946 and 1964, about 76 million children -the baby boom generation-were born in the United States. The baby boomers grew up during one of the longest periods of sustained economic growth in U.S. history and have enjoyed a considerably higher standard of living than any previous generation. The boomers represent a disproportionately large segment of the population (roughly 28 percent) and will soon swell the ranks of the elderly as they reach retirement.
By 2030, when the youngest boomers reach retirement age, the elderly population will be nearly double what it is today. By 2050, when the youngest surviving boomers turn 85, the population of the very old (those 85 and over) will have grown by more than 300 percent.
Baby boomers who do not plan for long-term care will face poor choices. While long-term care insurance is becoming more popular, the majority of boomers who can afford to purchase a policy have not yet done so. According to a survey from America's Health Insurance Plans (AHIP), 30 percent of Baby Boomers think they have long-term care coverage.
The oldest boomers will turn 65 this year, 2010 and the youngest by 2030. By 2050, the youngest surviving boomers will be 85, roughly the age at which long-term care is most needed. The advances in medical care and greater prosperity today is resulting in increased life expectancy among the elderly. The increase in life expectancy increases the need for long-term care in our society. The problem with increased longevity is the fact that it is increasing at a faster rate than the improvement in the quality of health. This will result in seniors living longer in the future, but may also need long-term care for a longer period of time.
The baby boomers bring mass quantities of people into this pool of seniors who will need care in the future. If the Baby Boomers do not do the planning now, what will happen? Do you think the government will be in a better place financially to handle this growth? The drain on the government will be staggering. Today, Medicaid pays approximately 43% of costs for seniors in nursing home facilities. How will the government be able to keep up? Fewer workers will be in the workforce contributing (your tax dollars) and more will be taking out of the system through Medicare and Medicaid.
Informal home-based care is less viable for baby boomers than it was for their parents. Several changes in how we live today limit the ways we can provide informal care to our families. Some of the demographic changes that are likely to lead to fewer options for informal home care include:
o Declining family size
o Increase in job-related mobility
o Greater work force participation
o Increase in divorce rates
o An increase in people choosing to remain single
Long-Term care planning is a key component to effective retirement planning. It can greatly ease the financial burden of disability in old age. Baby boomers need to realize the possibility of needing some type of care in the future and plan ahead for this possibility as well as recognizing that long-term care insurance is more affordable if purchased earlier than later. Be realistic when planning for your retirement. Don't be in denial that "this won't happen to me." Don't underestimate your life expectancy. Don't assume the government or your family will take care of you.'
In conclusion and as a "baby boomer" myself, this topic deserves a close and serious look. It is good to learn what your options are so that if an unexpected illness comes along (that could wipe out your retirement), you will be prepared with a good plan that enables you to have good choices in regards to your long-term care and not put a burden on your family.
For an unbiased opinion, seek the counsel of an independent long-term care specialist.
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