Women, Retirement Planning, And Life Expectancy

Women, more than men, say they expect to live past the age of 90. In fact, nearly twice the number of women said they expected to live a long life compared to men in a recent retirement survey. But despite having expectations of living longer, many women haven’t planned adequately for the financial requirements associated with increased longevity. For example, more than half of surveyed women said they respond to financial emergencies by dealing with them when they occur rather than planning for possible scenarios. But though women participants said they didn’t plan in advance, more than 70 percent admitted to being very or somewhat concerned about providing for their long-term care needs. The study highlights the need for women to be properly prepared for their financial needs in retirement. More here.

Misconceptions About Medical Expenses Threaten Retirement Comfort

The increasing cost of medical care in America threatens the dream of a comfortable retirement, even among people with $250,000 or more in household assets. A recent poll of Americans between the ages of 55 and 65 found that, among the seemingly financially prepared, there was a lack of planning for healthcare expenses and a widespread misunderstanding of Medicare benefits. The results revealed that Americans have many misconceptions about their potential medical expenses during retirement. Among them, respondents estimated that Medicare would pay for 68 percent of their healthcare costs during retirement and cover long-term care expenses, which it does not. They also underestimated the average amount Americans spend annually on medical expenses and few had a plan for dealing with the cost of long-term care, despite the fact that a majority of older adults will need it at some point. More here.

Signs Point To America’s Increasing Long Term Care Needs

Americans age 65 and older have a 70 percent chance they’ll require long-term care at some point in their lives. And, as the costs associated with such care increase, so does the need for retirement-age Americans to have a plan in place for their long-term needs. In 2009, long-term care support and services accounted for one in every seven healthcare dollars in the U.S., or nearly $295 billion. And that number would be even larger if not for the 62 million Americans providing uncompensated care for elderly friends and family. In 2009, unpaid caregiving resulted in an estimated savings of $450 billion. But with demographic trends indicating a coming decline in the number of unpaid caregivers and an increasing number of elderly Americans, experts warn that individuals should be paying more attention to these long-term care costs and planning in advance for their future expenses. More here.