Paying for Long-Term Care Is Bigger Worry Than Paying for Retirement, Americans Say
Washington, D.C., February 11 -- More Americans worry about paying for long-term care than paying for retirement, according to a survey of 1,000 adults. The survey, released by the National Council on the Aging (NCOA) also found that seven out of 10 Americans failed a quiz about the basic facts of long-term care. In addition, 48 percent of respondents indicated they have done little or no long-term care planning.
In the survey, 69 percent of Americans said they are worried about how they will finance long-term care for themselves and their spouses compared to 56 percent who said they are worried about paying for retirement. This finding holds true across all age groups and across all income levels. Baby boomers age 35 to 44 were the most likely (77 percent) of all age groups to express worry.
In the past ten years, many Americans have realized the importance of retirement planning and have already started to save through plans. However, while they also recognize the importance of long-term care, they don't know what to do.
"When it comes to long-term care, misinformation and inaction are a recipe for problems," added Dr. James Firman, NCOA president and CEO. "This could lead to very difficult choices and dire consequences for many individuals and their families to face in later years."
Americans Flunk Quiz
Most of the survey respondents also flunked a 10-question true-false quiz about long-term care. Fewer than one in four respondents were able to answer more than half the questions correctly.
The survey revealed lack of knowledge about who pays for long-term care, who typically provides the care, and what the care options are. For example, 73 percent of the respondents incorrectly said Medicare is the primary funding source for most older people's long-term care costs. Fewer than half, 44 percent, of respondents knew that most long-term care is provided by family and friends.
"Random guesses would have produced better results in this quiz," said Firman. "The poor results reveal some serious misconceptions about long-term care."
Also, Americans are most familiar with what they perceive as the least desirable type of long-term care and are less familiar with the more desirable types. Nearly 90 percent of respondents were familiar with nursing homes, but only 58 percent said nursing homes are a desirable option for long-term care. Seventy-seven percent said they were familiar with home care, but 92 percent described that option as desirable. Also, about three-quarters of respondents said assisted living facilities, continuing care retirement communities, and adult day care centers are desirable options for long-term care but just over half said they were familiar with them.
Generations: Xers Provide Care
Of those respondents who knew a family member or friend needing long-term care, more than half the baby boomers and almost two-thirds of those age 55 to 64 are providing or have provided hands-on care. Also, 45 percent of respondents age 34 and under, most of whom are Generation Xers, had also provided care, and 14 percent of them provided financial assistance to help pay for the care.