Baby boomers refers to the group of individuals born between 1946-1964 following World War II. According to the U.S. Census Bureau, this generation has had the lowest poverty rate of all age groups. However, as baby boomers are entering retirement age, they have a new set of spooky realities facing them.
Keeping up with Cost of Living Increases
As inflation rises and so does the cost of living, it’s harder for boomers on a fixed income to pay their bills. This trend has led to many people between the ages of 50 and 64 delaying retirement, so they can maintain their current standard of living.
Some of those currently retired are taking on a second or even third job to afford their monthly bills and health care. In addition, with so many scams and risks targeted toward older individuals, many struggle with knowing how to protect themselves.
Baby boomers are struggling to afford to retire, according to a survey conducted by the AARP. Nearly 50% of Americans age 50 and over have less than $25,000 saved for their retirement. The article suggests baby boomers struggle to have a realistic view of retirement and are not focusing their efforts to prepare for it.
Because of this, it has become an economic necessity for many to work past age 65. Many are already making moves toward downsizing their homes and cutting back on expenses to raise more funds for retirement.
Caring for Elderly Parents
While many baby boomers are struggling to plan and pay for their own retirement, they’re also faced with caring and even financially supporting their elderly parents. The financial and emotional strain of caring for their parents will put many baby boomers on the edge. As the unpredictable future of social security is considered, there’s question if baby boomers will have enough to live on.
“Many baby boomers are planning for retirement with long-term care insurance (LTCI).”
Knowing Who Will Care for Them
As baby boomers care for elderly parents and witness the impact it can have on family, it makes them think about their own future. To protect their own children and grandchildren from the financial and emotional strain of caregiving, many baby boomers are planning for retirement with long-term care insurance (LTCI).
LTCI protects a policyholder’s income and assets against the expense and risk of a long-term health care event. Coverage gives policyholders and their family peace of mind knowing they have access to funds and support to pay for long-term care needs in the home, community, or a facility.
Even though the baby boomer generation is living longer, they’re living longer accompanied by increases in disability. Health issues can eat away at one’s savings and the ability to work into retirement.
Since many baby boomers are still relatively young and healthy, these issues won’t be going away any time soon. The only hope is that Medicare and Social Security will continue to be available for baby boomers and the generations to follow them.
Do you have a plan for retirement? The future doesn’t have to be spooky or filled with unknowns when you plan ahead. At LTC Consumer, we help baby boomers plan for future care needs with professional long-term care planning. Request a free LTCI quote and speak with a specialist about your options today.