They're worried about it, but that doesn't mean they're planning for it, or even talking about it. And the cost of elder care can derail retirement, whether it's the retirement of those receiving care or the younger generation paying for it.
So says a new survey conducted by Harris Poll for senior living referral service A Place for Mom and the Mutual Fund Store, which found people poorly prepared for caring for the older generation, even if they know they're going to have to step in.
The survey found that 28 percent of Americans whose parents are still living believe they'll have to — or already do — support their parents financially during their senior years. And 86 percent of that demographic worry whether they'll be up to the challenge.
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The survey also found that 42 percent of Americans haven't discussed anything with their parents about elder care during their senior years, and 27 percent of those who believe they'll be on the financial hook for their parents' care haven't broached the subject at all.
These failures to discuss, and plan for, the expenses of elder care mean that many of those who will be responsible for paying for their parents' care will be woefully unprepared — not just for the cost of that care, but perhaps for their own retirements and any care they might need themselves.
That's because the expenses involved with senior facilities and medical care can easily wipe out retirement savings. That's particularly true given Americans' poor record of saving for retirement. They might not have enough to finance their parents' care, much less their own.
The study highlights the need to get people planning for, and at least talking about, future needs, both medical and financial. That way they'll understand the differences between Medicaid and Medicare and know whether additional funds might be available to cover expenses, such as veterans' benefits or a long-term care insurance policy.
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