28 Mar
Many in the Baby Boomer generation in Texas and elsewhere around the country are getting ready for their retirement years. With retirement planning, some individuals have also made steps to plan for how life will carry on after they pass away. They put funeral plans in place or make arrangements to care for loved ones after they are gone. However, a recent study showed that these consumers have not given the same consideration to what might happen to them if they live a very long life. Reports show that fewer people have long-term care plans in place.
A study conducted by a major insurance and retirement company showed that less than one third of those surveyed had done any long-term care planning. By contrast, over 80 percent had made arrangements for their funerals. The survey was conducted with individuals aged 54 to 72 in the middle-income range. Experts were concerned about the lack of long-term care planning since that expense could quickly deplete someone’s retirement funds.
Reports from the Department of Health and Human Services show that care for a retiree can average almost $140,000. Yet, nearly 80 of survey participants have nothing saved for long-term care. Even those who do have savings set aside have far less saved than necessary to cover the required care.
The study also addressed reasons that have led to this disparity. Many in this demographic group are confident that they will be able to manage their own long-term care costs as they occur. Others may have placed too much hope that Social Security or Medicare will cover their future expenses and have therefore not saved enough. Finally, some cite lack of information and advice as a reason for not making adequate plans.
It is likely that most senior adults will need some sort of long-term care over the course of their lifetimes. Therefore, making decisions and plans for this type of care is crucial while people are still able to do so on their own. Those interested in developing a plan for long-term care should contact a Texas attorney familiar with elder law. A knowledgeable lawyer will work diligently with clients to create a plan that will bring peace of mind for the future.