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March 04, 2013 at 09:23 AM
Less than a quarter of Americans have discussed long-term care costs with their financial advisors, according to a new report.
Nationwide Financial, Columbus, Ohio, discloses this finding in a summary of results from a survey of 813 adults ages 50-plus having $150,000 or more in annual household income or investable assets. The “Nationwide financial Consumer Study on Long-term Care Costs” conducted by Harris Interactive.”
The report reveals that also that one-quarter of Americans plan to cover long-term care expenses with LTC insurance, retirement benefits or personal savings. Those not retired are more likely to rely on their 401(k), while those retired will rely on their personal savings.
The survey adds that Americans are aware of the investment required to cover long-term care costs. They estimate LTC costs to be up to $80,000 annually; and by 2030 they estimate that nursing home care will cost them up to $112,000 annually.
Seven in 10 Americans, however, are unable to estimate long-term care costs, primarily because they have not thought about it or believe that long-term care is too complicated.
The survey notes also that Americans ages 50-plus are generally torn between leaving an inheritance for their children and paying for long-term care. However, a child purchasing LTC for a parent is not viewed as wanting to place them in a nursing home.
Women are more likely than men to strongly disagree that they are aware of filial support laws (62 percent vs. 51 percent). And women are more likely to strongly disagree that purchasing long-term care for their parents feels as if they would rather put them in a nursing home than have their parents live with them 51 percent vs. 38 percent).
Approximately one-quarter of Americans ages 50 and older currently own long-term care insurance for themselves for their spouse. Men, the report adds, are more likely than women to currently own LTC insurance for themselves (100 percent vs. 92 percent).
Among the three quarters that does not own LTC insurance, the survey states, the primary reasons is the inability afford the coverage.
