Long term care insurance and the baby boomer generation is a hot topic today. From 2011 to 2029, baby boomers (those born between 1946 and 1964) will turn 65. During this time period, 10,000 people will turn 65 every day.1
With so many baby boomers in the workforce reaching retirement, we could face a shortage of nurses and support staff. Not to mention, a strain on government assistance programs such as Medicaid.
Learn more about the challenges baby boomers are facing and the importance of long term care planning.
Government Programs May Not Handle the Influx
Medicaid is a government assistance program for low-income, elderly or disabled individuals. Eligibility may vary by state, but in most cases, participants are required to spend down to $2,000 in assets before being eligible.
With 76 million baby boomers reaching retirement age within the next decade, can state Medicaid budgets keep up?
Knowing the wave of baby boomers is looming on the horizon, the government attempted to solve the issue with a provision in the Affordable Care Act (ACA) called the CLASS Act, a national voluntary long term care insurance program. Unfortunately, this was repealed in 2013 when they couldn’t develop an affordable product.
Relying on the government for your care may not be the best option. It’s important to take control of your future by planning now.
Baby Boomers Will Live Longer and Need More Care
Due to medical advances, baby boomers are expected to live longer, resulting in higher care needs for longer periods of time. Depending on your state, the current annual cost of care for home care or facility care ranges from $50,000 to over $100,000.
These costs will only increase in the future due to inflation.
The Cost of Care Is Increasing Each Year with Inflation
If you think the cost of care is high now, just think what it will be 20-30 years from now when you need it!
Inflation increases the cost of care 1-4% each year. This is why it’s important for baby boomers to make a long term care plan now.
By planning ahead, you’ll know who will care for you and where the money is coming from to pay for your care.
Long Term Care Insurance and the Baby Boomer Generation – Planning Is More Important Than Ever
Providing care for a loved one can be physically, emotionally, and mentally draining for family members. If you’re a baby boomer, prepare for your future now with a long term care plan to protect your family.
Peace of mind comes from knowing you’ll be taken care of when you need it most and have the financial means to do so.
Secure a long term care plan for your future now by speaking with an LTC Specialist today. Learn more about your options and get an instant quote for long term care insurance here.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.
1 Visualizing Health Policy, Kaiser Family Foundation. August 28, 2013. Volume 310, Number 8.