Are Baby Boomers Overconfident About Long Term Care Planning?

Too many baby boomers have looked ahead to plan for their retirement but have neglected how long term care expenses could influence their ability to have a comfortable life after their working years.

A recent Banker’s Life study found that 74% of baby boomers felt confident in their ability to handle future health care costs, and yet the government estimates that the average cost of long-term care for a retiree in total is $138,000. Up to 80% of respondents in that same Banker’s Life study said they had no money set aside for the retirement health care needs.

For those who did have long term care savings earmarked, the median amount was just $40,000. While most people are familiar with the person who has needed long term care in retirement, and many know that they cannot count on family members or friends for around the clock care, this raises the question of whether or not baby boomers are overconfident.