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IRI report: confidence in meeting long-term care costs declines with age

By Warren S. Hersch

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Confidence in meeting long-term care costs declines with age, according to a new report.

The Insured Retirement Institute, Washington, D.C., published this finding in a report examines the confidence levels among boomers and GenXers. IRI commissioned Woelfel Research Inc., to conduct the survey, which polled 503 boomers ages 50-66 and 802 Americans ages 30-49.

The report finds that boomer confidence in meeting long-term care costs for themselves and for their parents is lower than for Gen-Xers. When asked whether they will have enough money to pay for long-term care costs, just 24% of boomers say so versus 28% of Gen-Xers.

However, 37% of boomers indicate they will have enough money to cover medical expenses during retirement, as compared to 34% of GenXers. The two generations about evenly split when asked whether they will have enough money to live comfortably in retirement: 36% of boomers versus 35% of Gen-Xers.

IRI find that among boomers who work with an advisor, 30% are “extremely or very confident” they will have enough money to pay for their own long-term care costs, compared with only 19% who do not work with an advisor.

The report also reveals that women, individuals with income less than $30,000 annually and those who are not married have less confidence they will meet their own long-term care expenses.

Just 24% of Gen-Xer women express confidence, versus 33% of Gen-Xer men. Among boomers, the percentages are 23% of women versus 26% of men.

By income level, 11% of boomers who earn less than $30,000 annually are confident they can meet their long-term care expenses. This compares with 19% of boomers who earn $30,000-$74,999 and 33% of boomers earning $75,000-plus.

More than a quarter (27%) of married boomers expresses confidence as opposed to 19% of single boomers. Among Gen-Xers, the percentages are 27% (married) versus 19% (not married.)