There is a distinction between developing a retirement financial plan and developing a retirement care plan and while the money side of the equation is important, so is the need for being clear about one's own needs, preferences and circumstances in developing a care plan, says Chris Campbell, Senior Vice President of Marketing and Communications with Bankers Life.
In a survey he conducted with baby boomers, four key findings were found indicating that boomers are often unprepared for the day to day care they're going to need in retirement.
The first finding showed that 72% do not have a plan. Secondly, 1/3 indicated that they will most likely need care, showing that most underestimate the need for care, when 70% of boomers will need it. Thirdly, while most had no idea the cost of retirement, those who responded said $47,000 when the actual amount is closer to $91,000, indicating most are underestimating the cost. Lastly, most boomers are expecting retirement care to benefit from the safety net of Medicare. 78% thought Medicare would pay for long-term care, which is generally not the case.
Campbell says the trend is that people need to do more planning as the planning becomes more complex and this study indicates that the number one concern of retirees over why they don't have a care plan was the cost of it.
Chris Campbell is Senior Vice President of Marketing and Communications with Bankers Life. For more information about him, click here. Chris spoke with Retirement News Today, providing online, on-demand, retirement news video content.