According to a recent Harris Interactive poll conducted on behalf of Nationwide Financial, boomers’ perceptions about the costs and parameters of long-term care are not aligned with reality. Far from it – the Long-Term Care study, which surveyed more than 800 seniors age 50 and above who have at least $150,000 in annual household income or investable assets, revealed that seniors underestimate the annual costs of long-term care by more than three times the actual cost.
Take a look at some of the major misperceptions in long-term care:
Perception: Long-term care = nursing home or residential assisted living. (Seventy-five percent of respondents believe this.)
Reality: Nearly half of all long-term care is performed by a professional in a senior’s home, 27 percent is done in a nursing home, and 24 percent in adult day care.
Perception: Long-term care costs will be about $78,923 annually.
Reality: According to a Life and Health Advisor report cited by Nationwide, by 2030, the cost of a nursing home is expected to reach $265,000 per year – and that’s not even for a private room!
Perception: “I will never need long-term care, so I don’t have to plan for it.”
Reality: The Department of Health and Human Services estimates that 70 percent of Americans over age 65 will need long-term care during their lifetime.
Perception: “I will only live for about 20 years after I retire.”
Reality: Boomers will average more than 30 years in retirement, reports Nationwide.
Perception: Fifty-seven percent of boomers don’t believe that state laws can force children to pay their parents’ long-term care debts.
Reality: Twenty-nine states have laws that could make children responsible for their parents’ unpaid long-term care bills.
View these and other findings in the infographic below, then tell us – how do your perceptions align with the realities of long-term care?
Long-Term Care Study Presented by Nationwide Financial
Provided by Nationwide Insurance