For many members of the Baby Boomer generation, the goal has always been a comfortable retirement. They assumed they would be able to pay for long-term care and medical assistance if needed. Many have spent decades saving for retirement or earning pension plans to prepare for these expenses.
However, reports now indicate that the cost of long-term care has been rising at an unprecedented rate. These costs are increasing even faster than inflation, compounding the issue. Many may find themselves unable to afford the care they need or see their lifetime savings depleted within just a few years.
Why is this happening?
There are several reasons for this alarming trend, including the general rise in prices for goods and services. However, this isn’t solely an inflation issue—costs are increasing at a rate that outpaces inflation, making even careful financial planning insufficient for some.
One key factor is the growing demand for long-term care. Every day, approximately 10,000 Baby Boomers turn 65. Over the next 25 years, the total population of Americans in this age group will grow by more than 50%. By then, around 86 million people will be over the age of 65. Additionally, the number of individuals aged 85 and older is projected to reach 19 million, triple what it is today.
Planning ahead is crucial
As demand for long-term care services increases and prices continue to rise, individuals need to plan ahead. Elderly individuals making estate plans need to consider long-term care costs carefully. Likewise, younger individuals with aging parents or grandparents should explore ways to help their loved ones prepare for these expenses. It is important to understand all potential legal options.
