This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Middle-Income Boomers Largely Uninformed And Unprepared For Retirement Care, New Study Says

CHICAGO, Aug. 6, 2013 /PRNewswire/ -- While a majority of middle-income Boomers report having at least a rough retirement financial plan in place, an alarming number— 72 percent— have no plan of any kind to address the day-to-day care they may someday need in retirement, according to a new study released by the Bankers Life and Casualty Company Center for a Secure Retirement ® (CSR).

The study, Retirement Care Planning: The Middle-Income Boomer Perspective, which focused on 1,299 Americans ages 49 to 67 with an annual household income of between $25,000 and $75,000, found only one in five (20%) have a rough plan for their retirement care and just 8% have a detailed plan.

More Prepared for Death than LifeIn fact, the study cites that Boomers today are nearly five times more likely to be concretely planning for when they pass away than to have a detailed plan for the ongoing long-term care they may need, such as nursing care or home care, while they live out their retirement years. 

Eight in ten (81%) of Boomers have taken at least one detailed action to prepare for when they pass away, including:

  • Communicating preferences about funeral arrangements
  • Identifying burial location
  • Purchasing life insurance to cover final expenses
  • Creating a will

By comparison, less than one-fifth (17%) of Boomers have taken concrete action to plan for their care during the later years of their life.

Long-Term Care Expectations and RealityAlthough Boomers today anticipate that they will have less financial security and support in their retirement years than previous generations, the study found that the current generations of retirees significantly underestimate the likelihood of one day needing long-term care.  Only one-third (36%) believe they will need long-term care services, whereas the actual chance of needing care is 70%, according to the U.S. Department of Health and Human Services. 

When it comes to discussing retirement care, roughly half of all middle-income Boomers have not had a conversation with anyone (even their spouse) about how they wish to receive long-term care (43%) or how they will pay for it (56%).  Furthermore, eight in ten could not venture a guess on the cost for home health aide services (81%) or nursing home care (78%).

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs