Genworth Financial Inc. (NYSE:GNW) lured a wide range of business and personal finance reporters to a briefing in Manhattan today to try to get them to think about the aging of the U.S. population.
Tom McInerney, Genworth’s president, faced questions during the Long Term Care Awareness Month event about the impact of the recent announcement that the company has had to add more than $500 million to its long-term care insurance (LTCI) claim reserves. He also reacted, indirectly, to a new Boston College retirement center analysis in which economists suggested that the percentage of consumers with catastrophic long-term care (LTC) costs may be lower than commonly believed.
But he seemed to be most passionate when he talked about serving on the commissions that have tried to shore up U.S. and global efforts to deal with the aging of the population, and especially about the likely future impact of LTC costs.
“The crisis is going to have a huge impact on the economy of the United States,” McInerney (photo, right) said.
McInerney said serving on the various reform commissions has been sobering.
“You realize how bad it is,” McInerney said.
More than 60 percent of U.S. baby boomers will likely be totally dependent on government programs, and the government will have no choice but to raise taxes and slash benefits, McInerney said.
People who have the ability to save and insure for retirement income and LTC needs have a moral obligation to do so, to reduce the burden on government programs as much as possible, McInerney said.