It's no surprise that people want to retire comfortably, but it's not surprising that so few Americans think they can actually achieve a comfortable post-work life.
According to the poll results released Thursday, only 23% of retirees today say they definitely think they will be able to maintain a nice lifestyle throughout their retirement years. In another area 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 does the data says?
The data, released by the Transamerica Center for Retirement Studies, indicates that 14% of retirees say they'll be able to afford long-term care if they need it.
A wide-ranging and highly personalized set of assisted services that a person needs is known as long-term care. Many retirementers, who have their own health issues at the age of retirement, spend their savings on assisted living, skilled nursing, and/or a room in a nursing home.
According to the Department of Health and Human Services, 70 percent of retirees and pre-retirement workers will need ongoing care at some point, and many retirees and pre-retirement workers fear a decline in their health that will require long-term care. About 28% of pre-retirement workers and 35% of retirees are worried about the cost of long-term care.
These worries compound other financial worries shared by retirees and older workers. The survey shows that nearly half of older workers and one-third of retirees fear outliving their savings completely, and about 4 in 10 worry that social security will not be able to bridge that gap.
The average private room in a nursing home costs about $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. However, the premiums tend to be high and frequently increase over time, making it impossible for many aging workers to afford it. Besides that, many Americans do not fully grasp the scope of long-term care insurance, and they may not even consider it as an option.
A significant number of people are trying to depend on loved ones for help if their health declines. Of thosesurveyed, 46% of them plan to receive their care from family and friends rather than long-term care specialists. Of the remaining pool of retirees, 31% said they have no plan at all for long-term care.
Jill Cornfield, 50, has covered retirement for more than 10 years. My consent to the processing of my personal information is agreed upon by Money's Terms of Use and Privacy Notice.
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