Retirees' long-term care risk management plans may not be realistic, actuaries find

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Long-term care makes ADP's list of industries most challenged by upcoming health benefits requiremen
Long-term care makes ADP's list of industries most challenged by upcoming health benefits requiremen

Planning for long-term care continues to be a major concern for many facing retirement, but their risk-management plans need some improvement, according to a new report from the Society of Actuaries.

Respondents to the survey indicated concern over the changing nature of healthcare delivery and the ability to pay for long-term care service, according to the report. Though 93% of those who responded to “The 2009 Risks and Process of Retirement Survey” said that pursuing a healthy lifestyle is their primary risk-management strategy, that may not be a reality for some people, according to the report. It likely represents their ideal view of the future. Only 32% of retirees and 20% of pre-retirees said they have begun saving for the possibility of needing long-term care. Less than half—46%—of retirees say they are worried about not being able to afford a nursing home stay.

When it comes to planning for major financial decisions, 80% of people do not look more than 20 years ahead, according to the report. Only 5% plan past their lifetime. More information on the report is available at the Society of Actuaries website. http://www.soa.org/