It’s not just the U.S. facing an aging population, the baby boomers were a result of World War 2, a world-wide event. This report ranks the social and economic well-being of elders in 91 countries – and none are truly prepared. By 2050, for the first time in history, seniors over the age of 60 will outnumber children under the age of 15.
With our Social Security program we are better off than seniors in many other countries, assuming the government has the funds to replace all the money it “borrowed”. Similar systems in Sweden, Norway, Germany, Netherlands, and Canada all rank higher than the U.S. system.
These statistics bring up two concerns of aging, more of us will need help at older ages, and there will be fewer workers to provide that assistance. In any industry with a need for more workers than are available, wages rise to bring in more applicants for the jobs.
Long Term Care (LTC) costs have been increasing at an average rate of 5% to 6% over the past 20 years, and will accelerate in the future. My LTC insurance policy has a 5% compound inflation feature on the daily benefit it will pay for my care, and I will not offer such LTC insurance without that feature. A lower inflation factor might make an insurance policy less expensive, and get the sale for that agent, but is not in your best interest.
Perhaps you feel that your “nest egg” is sufficient and you can pay for LTC out-of-pocket. At 5% inflation, costs will double every 15 years. This a nursing home costing $8500 a month today will be $34,000 a month in 30 years. If that seems high, remember what gasoline or cars cost 30 years ago.
Are you really prepared, or just hoping you never need care, and die peacefully in your sleep? Perhaps you are hoping your children will take care of you. When they and their spouses get home from work after picking up their children from day care, call them and ask if they have the time, room, finances, and energy for that.
Perhaps you are thinking that LTC insurance will be a waste if you never need care. I feel the same way about my car insurance, since I have not had reason to use it in over 25 years (knock on wood). I think that is a good thing, and will be pleased and lucky if I do not ever use my LTC insurance either. Every year I pay the premium, fairly easy to do as it is just the interest on a portion of the nest egg, and am glad that I am able to do so. I am also glad I purchased it back when I was 52, and healthy enough to get it. I’m past that point now, although very active. Don’t you wait until it’s too late, investigate LTC insurance now. Every year you own it, the benefits get larger to keep up with inflation. The longer you wait, the larger a policy you will need to purchase.
Call Romeo Raabe, TheLongTermCareGuy.com at (920) 884-3030 or (800) 219-9203 to schedule time to investigate.