Even Older Americans Get Failing Grade on Their
Knowledge About Long-Term Care
MetLife survey finds an average score of just 52%
among respondents age 40 to 70
Oct.
28, 2009 - Older Americans are really not very knowledgeable about
long-term care, according to a survey that questioned people age 40 to
70. The MetLife Long-Term Care IQ Survey, found only 21 percent
achieved a score of 70 percent or higher.
Most know what long-term care is and how much it
costs, but their scores fall short regarding how many people will need
it and how they will pay for it. The survey, taken by 1,021 individuals,
also compared results with a similar 2004 study and found the 2009
overall score was only 52%, and unchanged since 2004.
“The study reveals that most are not taking
appropriate steps to protect themselves from potentially catastrophic
expenses,” says the MetLife news release. The survey was released in
late September.
According to the study:
● Just about four in ten (36%) know that 60% –
70% of 65-year-olds will require long-term care services at some point
in their lives.
● Just over one-third know that most long-term
care services are received at home. While the number of respondents
answering correctly (37%) increased since the 2004 survey (18%),
awareness is low overall.
● Older people (over 60) are more knowledgeable
about long-term care than younger people (40 to 49).
● Fewer than half (45%) are aware that one in
five American households care for an adult family member or loved one.
● Few are taking action to protect themselves
from such potentially catastrophic expenses; only 18% know long-term
care insurance rates are based on age, but almost nine in ten (87%) are
aware that a comprehensive long-term care policy covers home, assisted
living and nursing home care.
“While long-term care knowledge has increased in
some areas since 2004, serious and potentially costly misconceptions
remain,” said Sandra Timmermann, Ed.D., director of the MetLife Mature
Market Institute.
“Many middle-aged and older Americans fail to grasp
long-term care’s fundamental concepts, setting the stage for
difficulties in the future,” said Dr. Timmermann. “Still others
mistakenly believe they will be covered by resources that do not pay for
such care. And, there is the common misconception that ‘this won’t
happen to me.’
“As people plan for retirement, they need to
consider not only how much income and savings they will need to last a
lifetime, but also how they would pay for ongoing care should they
develop a chronic condition or serious illness,” said Dr. Timmermann.
“Without adequate savings or long-term care insurance, the cost of care
can potentially derail a financial plan and put retirement at risk. The
need for long-term care can occur at younger ages as well, so it’s
especially important to begin the planning process early.”
Other key research findings include the following:
● Eight in ten respondents (85%) understand that long-term care could
have many causes, such as Alzheimer’s disease, an accident or a chronic
or disabling condition.
● More than four in ten (43%) are able to
correctly identify the national average monthly cost for assisted
living.
● Two-thirds (66%) are unable to identify which
programs or insurance policies pay for long-term care.
● More than six in ten (64%) are aware that
transferring financial assets to your family would not allow you to
qualify immediately for Medicaid payment of long-term care.
Long-Term
Care Facts
● Though chronic disability can occur at any
time, the demand for long-term care increases dramatically with age.
About 70% of people over age 65 will require at least some long-term
care services during their lifetime.
● As the U.S. population ages, the percentage of
people older than 65 will increase from about 13% in 2009 to 20% in
2040. Part of the projected increase is due to an increased life
expectancy beyond age 65.
● Long-term care can be provided in a nursing
home or assisted living facility, but most care is provided at home.
To help consumers increase their knowledge about
long-term care, the MetLife Mature Market Institute offers an
informational guide, The Essentials: Long-Term Care Insurance,
which is available for download at
http://www.maturemarketinstitute.com. The publication was produced
to help people better understand long-term care and long-term care
insurance. It covers such topics as the types of long-term care
available, financing and the various options available within long-term
care insurance policies.
Methodology
The MetLife Long-Term Care IQ Survey was
administered online to 1,021 participants in February and March of 2009
by GfK Customer Research North America. Participants were aged 40 to 70
and were the co- or primary financial decision-maker in their household.
A similar study was conducted in 2004.
About the MetLife Mature Market Institute
Established in 1997, the Mature Market Institute (MMI) is MetLife’s
research organization and a recognized thought leader on the
multi-dimensional and multi-generational issues of aging and longevity.
MMI’s groundbreaking research, gerontology expertise, national
partnerships, and educational materials work to expand the knowledge and
choices for those in, approaching, or caring for those in the mature
market.
MMI supports MetLife’s long-standing commitment to
identifying emerging issues and innovative solutions for the challenges
of life. MetLife, a subsidiary of MetLife, Inc. (NYSE: MET), a leading
provider of insurance, employee benefits and financial services with
operations throughout the United States and the Latin American, Europe
and Asia Pacific regions.
For a free copy of the MetLife Long-Term Care IQ
Survey, call (203) 221-6580, e-mail
maturemarketinstitute@metlife.com or download it from
http://www.maturemarketinstitute.com under “What’s New.” You may
also send a written request to the MetLife Mature Market Institute, 57
Greens Farms Road, Westport, CT 06880.
