Long-Term Crisis
Only 1 in 4 U.S. Adults Think They
Can Pay for Long-Term Care
41% Confident they do not have
enough money, 33% Unsure
Feb. 1, 2006 - Only a quarter (26%) of U.S. adults
think they have or will have saved enough money to finance their own
potential long-term care needs as they age. Fully 41 percent do not
think they will have enough money to cover their expenses as they age
and 33 percent are not sure. These findings are in a new Wall Street
Journal Online/Harris Interactive Personal Finance Poll.
Adding to the financial strain, many adults may
have to finance some of the costs associated with their parents
potential long-term care needs, with more than a quarter (28%) of adults
whose parents are still living saying that they and/or their siblings
will be sharing these cost with their parents and 14 percent saying that
these costs will fall primarily on them and/or their siblings.
These are some of the results of the online survey
of 2,918 U.S. adults conducted between January 10 and 12, 2006, for The
Wall Street Journal Onlines Personal Journal Edition.
Other interesting findings from the survey include:
Of concern, substantial numbers of those
closest to retirement age (56% of adults aged 45 to 54 and 39% of
adults aged 55 and over) do not think they will have enough money to
finance their own potential long-term care needs as they age.
As expected, those with higher incomes are more
likely to say that they will have enough money to finance their own
potential long-term care needs. However, even at the highest
household income level measured ($75,000 or more annually), only two
in five (40%) say they will have enough money to do so.
When asked about steps they have taken to
prepare for their own aging, less than half (48%) of adults say they
have taken any steps to prepare. Almost a third (31%) say they have
created a will, while smaller numbers say they have set aside funds
to be used for a retirement community/assisted living
community/nursing home (11%), talked to their children about plans
for their elderly care (9%), and/or purchased long-term care
insurance (9%) among other things.
While three percent of all adults have at least
one of their parents living with them in their household, 41 percent
of those whose parents are still living have taken other steps in
preparation for their parents getting older. Some steps taken
include talking with their parents about plans for their elderly
care (22%), helping their parents set up a will (12%), and helping
their parents relocate to be closer to them, their sibling or
another person who would provide support or care (8%).
TABLE 1
LIVING SITUATION BY AGE
"For the following questions please
assume that a parent may constitute your birth parent, foster parent,
step-parent, in-law, guardian, grandparent, or other individual that has
raised you."
"Which of the following applies to
you?"
Base: All adults
|
|
Age |
|
Total |
18-34 |
35-44 |
45-54 |
55+ |
|
(n=2,918) |
(n=873) |
(n=563) |
(n=508) |
(n=974) |
|
% |
% |
% |
% |
% |
|
Parents still living (Net) |
69 |
98 |
92 |
72 |
26 |
|
Live with at least one parent (Sub-net) |
15 |
36 |
12 |
5 |
2 |
| I
live with at least one of my parents in their household |
12 |
32 |
8 |
4 |
1 |
| At
least one of my parents lives with me in my household |
3 |
4 |
4 |
1 |
1 |
| I do
not live with my parents |
54 |
62 |
80 |
67 |
24 |
| My
parents are deceased |
31 |
2 |
8 |
28 |
74 |
Note: Percentages may not add up to 100% due to
rounding.
TABLE 2
PRIMARILY RESPONSIBLE FOR LONG TERM
CARE NEEDS OF YOUR PARENTS BY AGE
"Thinking about the potential
long-term care needs of your parent(s) as they get older, who do you
expect will be primarily responsible for financing those needs, such as
costs associated with community/assisted living or nursing home care or
medical costs?"
Base: Parents still living
|
|
Age |
|
Total
(n=2,023) |
18-34
(n=865) |
35-44
(n=527) |
45-54
(n=373) |
55+
(n=258) |
|
% |
% |
% |
% |
% |
|
Primarily my parents |
37 |
28 |
38 |
46 |
49 |
|
My parents and I and/or my siblings
will be sharing the costs |
28 |
33 |
27 |
20 |
22 |
|
Primarily me and/or my siblings |
14 |
16 |
13 |
15 |
13 |
|
Other |
5 |
2 |
5 |
6 |
10 |
|
Not sure |
16 |
21 |
17 |
13 |
6 |
Note: Percentages may not add up to 100% due to
rounding.
TABLE 3A
FINANCE OF OWN POTENTIAL LONG-TERM
CARE BY AGE
"Do you think you have/will have
saved enough money to finance your own potential long-term care needs as
you age, such as costs associated with community/assisted living or
nursing home care or medical costs?"
Base: All adults
|
|
Age |
|
Total (n=2,918) |
18-34 |
35-44 |
45-54 |
55+ |
|
(n=873) |
(n=563) |
(n=508) |
(n=974) |
|
% |
% |
% |
% |
% |
|
Yes |
26 |
29 |
23 |
20 |
28 |
|
No |
41 |
30 |
46 |
56 |
39 |
|
Not sure |
33 |
41 |
31 |
24 |
33 |
Note: Percentages may not add up to 100% due to
rounding.
TABLE 3B
FINANCE OF OWN POTENTIAL LONG-TERM
CARE BY INCOME
"Do you think you have/will have
saved enough money to finance your own potential long-term care needs as
you age, such as costs associated with community/assisted living or
nursing home care or medical costs?"
Base: All adults
|
|
Income |
|
Total (n=2,918) |
Less than 35K |
$35K - $49.9K |
$50K-$74.9K |
$75K+ |
|
(n=803) |
(n=412) |
(n=466) |
(n=673) |
|
% |
% |
% |
% |
% |
| Yes |
26 |
13 |
18 |
32 |
40 |
| No |
41 |
57 |
46 |
39 |
30 |
| Not
sure |
33 |
30 |
36 |
29 |
30 |
Note: Percentages may not add up to 100% due to
rounding.
TABLE 4A
PREPARATION FOR AGING OF PARENTS
BY AGE
"Which of the following steps have
you taken in preparation for your parent(s) getting older?"
Base: Parents still living
|
|
Age |
|
Total
(n=2,023) |
18-34
(n=865) |
35-44
(n=527) |
45-54
(n=373) |
55+
(n=258) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for parent(s)
getting older (Net) |
41 |
26 |
44 |
53 |
65 |
|
Talked with my parent(s) about plans for their
elderly care |
22 |
16 |
25 |
26 |
32 |
|
Helped my parent(s) set up a will |
12 |
5 |
13 |
15 |
25 |
|
Helped my parent(s) relocate to be closer to
me/my sibling/another person who will be providing support/care |
8 |
3 |
6 |
17 |
16 |
|
Relocated to be closer to my parent(s) |
6 |
4 |
7 |
10 |
6 |
|
Spent money on making my home or my parents home
elder-friendly |
6 |
3 |
8 |
7 |
7 |
|
Set aside funds to be used for a retirement
community/assisted living community/nursing home |
3 |
3 |
4 |
3 |
5 |
|
Helped my parent(s) pay for a retirement
community/assisted living community/nursing home |
2 |
2 |
3 |
2 |
4 |
|
Purchased long-term care insurance for my
parent(s) |
2 |
2 |
3 |
1 |
1 |
|
Other |
10 |
5 |
7 |
17 |
20 |
|
I have not taken any steps in preparation for my
parent(s) getting older |
59 |
74 |
56 |
47 |
35 |
Note: Multiple-response question.
TABLE 4B
PREPARATION FOR AGING OF PARENTS
BY INCOME
"Which of the following steps have
you taken in preparation for your parent(s) getting older?"
Base: Parents still living
|
|
Income |
|
Total |
Less than 35K |
$35K - $49.9K |
$50K-$74.9K |
$75K+ |
|
(n=2,023) |
(n=543) |
(n=280) |
(n=334) |
(n=486) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for
parent(s) getting older (Net) |
41 |
32 |
39 |
50 |
44 |
|
Talked with my parent(s) about plans
for their elderly care |
22 |
15 |
24 |
27 |
27 |
|
Helped my parent(s) set up a will |
12 |
7 |
11 |
18 |
15 |
|
Helped my parent(s) relocate to be
closer to me/my sibling/another person who will be providing
support/care |
8 |
7 |
14 |
7 |
9 |
|
Relocated to be closer to my
parent(s) |
6 |
8 |
10 |
7 |
4 |
|
Spent money on making my home or my
parents home elder-friendly |
6 |
3 |
5 |
9 |
6 |
|
Set aside funds to be used for a
retirement community/assisted living community/nursing home |
3 |
1 |
2 |
4 |
5 |
|
Helped my parent(s) pay for a
retirement community/assisted living community/nursing home |
2 |
* |
4 |
2 |
2 |
|
Purchased long-term care insurance
for my parent(s) |
2 |
2 |
2 |
2 |
3 |
|
Other |
10 |
7 |
7 |
13 |
9 |
|
I have not taken any steps in
preparation for my parent(s) getting older |
59 |
68 |
61 |
50 |
56 |
Note: Multiple-response question.
TABLE 5
PREPARATION FOR YOUR AGING BY AGE
"Which of the following steps have
you taken in preparation for yourself getting older?"
Base: All respondents
|
|
|
Age |
|
Total
(n=2,918) |
18-34
(n=873) |
35-44
(n=563) |
45-54
(n=508) |
55+
(n=974) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for
self getting older (Net) |
48 |
21 |
40 |
49 |
78 |
|
Created a will |
31 |
8 |
22 |
33 |
57 |
|
Set aside funds to be used for a
retirement community/assisted living community/nursing home |
11 |
6 |
10 |
12 |
16 |
|
Have talked with my child/children
about plans for my elderly care |
9 |
2 |
2 |
11 |
20 |
|
Purchased long-term care insurance |
9 |
4 |
10 |
9 |
14 |
|
Spent money on making my home
elder-friendly |
7 |
1 |
3 |
7 |
14 |
|
Relocated to be closer to my
child/children |
2 |
1 |
1 |
1 |
5 |
|
Moved into a retirement
community/assisted living community/nursing home |
1 |
1 |
1 |
* |
3 |
|
Agreed with my child/children that
one/all will relocate to be closer to me |
1 |
1 |
1 |
* |
2 |
|
Other |
11 |
7 |
10 |
12 |
15 |
|
I have not taken any steps for
myself in preparation for getting older |
52 |
79 |
60 |
51 |
22 |
