AFA: Baby Boomers Face Uncertain Financial Future with Caregiving and Long-Term Care

A great article in the Alzheimer’s Foundation of America newsletter on the real life impact of caregiving and long-term care options. -SP

The overwhelming majority of baby boomers who double as caregivers are changing their retirement expectations and current lifestyles, and female baby boomers in particular are unsure of how they will pay for their long-term care needs, according to two separate studies by Humana Inc., a health and supplemental benefits company, and AARP, respectively.

The Humana survey showed that 80 percent of baby boomers are rethinking retirement, including 44 percent who expect to work longer and 21 percent who plan to change or start a new career after they retire. It also showed that many boomers are making other considerable sacrifices to care for aging parents: 46 percent have given up social activities, 43 percent have skipped a vacation and 36 percent have dipped into personal savings. While 81 percent of respondents said they felt appreciated for providing such care, more than one in three said they felt helpless. Among those who were caring for parents and children simultaneously, known as sandwich caregivers, more than three in four say they are stressed about health care costs ahead. The survey included 1,000 Americans aged 45 to 64 who are caring for parents or other family members.

Similarly, the AARP survey found that six in ten women aged 45 to 64 have not yet determined how they will pay for their long-term care needs It also found that 40 percent were not aware that long-term care includes services other than care in a nursing home, and that personal savings will likely be used to pay for future care needs.

Learn more about the Alzheimer’s Foundation of America here.

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