Boomers Unprepared for Long Term Care

July 2, 2001 ( Despite rapidly approaching retirement, only 7% of baby boomers have purchased long-term care insurance.

That may not be surprising, since less than a quarter (24%) have ever had anyone recommend they purchase it, according to a survey.

The survey, commissioned by the GE Center for Financial Learning, also found that three quarters of the sample did not know the cost of long-term care insurance premiums, with the majority overestimating the cost by more than 300%.

In addition, the survey found that:

  • over 70% of respondents are concerned about outliving their financial resources, and
  • some 85% are highly concerned with maintaining control over care options and where they live.

Taking Responsibility

In terms of bearing the responsibility for their long-term care:

  • seven out of ten respondents believe that they, themselves, should be most responsible, a finding reinforced by the 77% that said their children should plan little or no role
  • still, 14% believe that the government should be responsible.

The study, Secure Tomorrow’s Autonomy Today, surveyed almost 1,000 Americans on aging, long-term care resources, motivators and barriers to retirement planning, and future long-term care recommendations.