It's no shocker that people want to retire comfortably, but what remarkable is just how few Americans think they can actually achieve a comfortable post-work life.
According to poll results released yesterday, only 23% of retirees today say they definitely think they will be able to maintain a nice lifestyle throughout their retirement years. One region where there's particular uncertainty is their long-term care - an expense only a small group of retirees think they'll be able to cover.
What data does it say?
The report, released by the Transamerica Center for Retirement Studies, indicates that 14% of retirees are confident that they'll be able to afford long-term care if they need it.
A wide-ranging and highly personalized set of assistance services that a person needs is known as long-term care. As the health problems begin to accumulate, many retirees end up paying for assisted living, skilled nursing, and/or a room in a nursing home with their savings.
According to the Department of Health and Human Services, 70% of retirees and pre-retirement workers fear a decline in their health that will require long-term care, according to the Department of Health and Human Services. For retirees, 28% are worried about the cost of long-term care.
These concerns compound other financial worries shared between retirees and older workers. Nearly half of older workers and one-third of retirees fear outliving their savings completely, with about 4 in 10 worried that Social Security will not be able to bridge that gap.
For example, the average private room at a nursing home cost $9,000 per month, according to one estimate.
The cost of these expenses can be covered by long-term care insurance, and there are numerous long-term care insurance companies to choose from. But the premiums are typically high and often increase over time, putting it out of reach for many aging workers. On top of it, many Americans don't fully grasp the scope of long-term care insurance, and many might not even consider it as an option.
A large group of people are expecting to rely on loved ones for help if their health declines. The Transamerica study found that 46% of those surveyed plan to receive their care from family and friends rather than long-term care specialists. The remaining pool of retirees, 31%, say they have no plan at all for long-term care.
Jill Cornfield has covered retirement for more than 10 years. I accept Money's Privacy Notice and consent to the processing of my personal information.
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All information provided here is accurate as of the published date.