Despite generally feeling confident in their ability to someday retire, new research shows some caregivers remain skeptical.
The Certification For Long-Term Care (CLTC), Home Instead, Milliman, and TCARE sponsored the survey of 800 family caregivers with income thresholds of $40,000 or more, finding that while 70% say they will have enough money to live comfortably in retirement, 84% say they are concerned long-term care needs could impact their retirement confidence.
Additionally, the survey reports that these caregivers understand they will likely—or at least somewhat likely—need their own care at some point in the future. As a result of their experience as caregivers, just under 90% said they have been influenced to plan ahead for their own care.
Roughly twice as many caregivers as the general adult population (26% vs. 14%) know that long-term costs are largely paid out of pocket by care recipients and their families, however, nearly three in four do not have an accurate understanding of “who pays” for long-term care needs.
“While [family caregivers] understand long-term care will be costly, they face obstacles actively planning for their own,” said Eileen J. Tell, CEO of ET Consulting, LLC and a fellow of the Gerontology Institute at the University of Massachusetts Boston, who led the design and analysis of the survey.
Over half of respondents indicated they would do one of the following concrete planning actions due to their experience with caregiving: set aside money for the future, buy long-term care insurance, or talk with a financial planner. Eight percent were not motivated to plan because they either felt it was too hard to think about (32%) or couldn’t see any viable options (17%).
Over 70% of respondents said they were very or somewhat interested in long-term care insurance, while 55% of respondents said they would not purchase the insurance due to high costs. Caregivers who experience “high strain” were also more likely to buy long-term care insurance.
Among caregivers who were not interested in purchasing long-term insurance included women who are divorced, separated, or widowed and retirees with no children under the age of 21 at home.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
