While many debate the exact millennial generation time period, demographers and researchers typically consider millennials to be born in the early 1980s through the mid-1990s or early 2000s. Millennials were the first generation to grow up with computers and technology and became the creators of well-known technology companies such as Facebook, Google, and Instagram.
So, what do millennials think about long-term care, and when do they need to consider it for their own future?
Millennials Are Responsible for Their Financial Future
Millennials understand they are primarily responsible for their financial future. They witnessed their parents go from a defined pension retirement to a 401(k) savings plan. While their parents worked for the same company for 30+ years to retire with a pension, millennials can take their 401(k) with them and typically change jobs every 3-6 years.
Millennials felt the crash of 2008 first-hand, including the difficult job market. They accept that the government and employers won’t always be their financial provider now or into retirement. This means millennials are starting “side gigs” and are more open to planning for their own future needs, including long-term care.
Many Millennials Have Experienced Care Giving
Many millennials experienced their grandparents go through Alzheimer’s, dementia, or needing care due to old age or other ailments. Some millennials have already been caregivers to their own parents. They understand the physical, emotional, and financial hardship of caring for a loved one. These experiences led millennials to want something better for themselves and their own family’s future.
How Millennials Consume Information
Millennials are used to having access to information fast – how they want it and when they want it. The internet has changed how information is accessed and cell phones brought information to your fingertips to take wherever you go.
Consumers have more options than ever before and expect to find only the information they want and need. One of the primary reasons LTC Consumer was created was to offer unbiased independent information on long-term care insurance so consumers can educate themselves without needing to speak with a sales agent first.
“With a little planning, their retirement plan can be as strong as their social network.”
Millennials Planning for Long-Term Care
So, when should millennials think about long-term care insurance for themselves? Many millennials have other financial priorities such as housing, retirement planning, emergency savings, etc. Before considering LTC coverage, millennials should be financially well-established.
Millennials typically don’t need a long-term care policy before age 40, but no later than age 55. The rise in insurance premiums between the ages of 40 and 55 are minimal. As you get older, premiums see a much higher spike. Ages 40 to 55 generally have lower risks of experiencing chronic health conditions which could prevent applicants from being medically eligible for coverage.
Just like the generations before them, millennials are changing the world. With a little planning, their retirement plan can be as strong as their social network.