The values of the Baby Boom generation seem to have have changed over the years. Once it was all about flower power. Now the focus includes financial power – specifically, leaving a financial legacy.
A March 25, 2019 Financial Advisor Magazine article entitled “Baby Boomers More Prepared For Dying Than Living” reports on a recent survey from the Bankers Life Center for a Secure Retirement. The survey found that Boomers are eager to leave a financial legacy for their loved ones. But at the same time, they are giving short shrift to the challenges of bankrolling their own long-term care. In other words, they are focused on death planning, less so on life planning.
It’s a puzzling finding, because the majority of respondents admit they know someone who needs long term care, and 45% have been caregivers themselves! Moreover, the data shows Boomers face a significant chance of needing long-term care: The U.S. Department of Health and Human Services estimates that there is a 70% chance that someone who is 65 years of age today will need some type of long-term care in the future. Since long-term care costs can easily impoverish a middle class family, neglecting life planning jeopardizes the chances of anything being left over for the children.
Of course, in today’s America, there are constraints on what a middle class person can do to prepare for long-term care costs. The “Medicare for All” mantra with long-term care included, remains just a dream at this point. Notwithstanding, there are steps Baby Boomers can and should take to protect their nest eggs:
First, there is long-term care insurance. In the past decades there have been many changes in the industry, giving consumers more flexible insurance opportunities. For more information on these policies, click here.
There is also Medicaid. Like many people, Boomers tend to assume that they need to be impoverished to get long-term care benefits in Florida. But with professional legal guidance, that’s not necessarily the case. And the sooner you start planning, the better.
Baby Boomers are well-advised to get a grip on not only what they want to leave behind, but how they are going to cope during their lifetimes if incapacity strikes. To get the ball rolling, meet with our Florida elder law our attorneys to discuss your options. Don’t procrastinate!