Middle-income baby boomers are unprepared for the high cost of long term care due to their wrong estimates. According to a new study by Bankers Life Center for a Secure Retirement, baby boomers expected that the annual cost of nursing home is $46,890 but the true cost is $90,520.
These baby boomers only have investable assets of $2,500 to $100,000. But just a year of stay in a nursing home can wipe out their assets. This is the reason why people chose to work past the age of 65. Most boomers are optimistic when it comes to retirement but a lot of them are worried about meeting their financial needs in the future.
The cost of long-term care is definitely one of the reasons whey baby boomers delay their retirement. This will surely go on since more people are living much longer and will require long term care. Statistics would reveal that around 70% of Americans 65 and above will require any form of long term care.
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