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Financial Preparedness for Long-Term Care Needs in Old Age

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Consumer Knowledge and Financial Decisions

Part of the book series: International Series on Consumer Science ((ISCS))

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Abstract

With the first of the large baby boom generation poised to retire, there is little evidence that they or the retirees to follow are financially prepared for the risk of potentially catastrophic costs of disability-related long-term care. Both the high cost of insurance and uncertainty about its value are widely thought to account for the lack of preparedness. This chapter reviews evidence on the risk of long-term care, types of long-term care, associated financial risks, and consumer knowledge of these risks. Common and not-so-common options for private financing of long-term care and barriers to their widespread adoption are discussed, and a final section briefly reviews policies in place or proposed for increasing private preparation.

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Authors and Affiliations

  1. Urban Institute, Health Policy Center, 2100 M Street N.W., Washington, DC, 20037, USA

    Brenda Spillman

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  1. Brenda Spillman
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Correspondence to Brenda Spillman .

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Editors and Affiliations

  1. Dept. Economics, University of Maryland, Baltimore County, Hilltop Circle 1000, Baltimore, 21250, Maryland, USA

    Douglas J. Lamdin

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Spillman, B. (2011). Financial Preparedness for Long-Term Care Needs in Old Age. In: Lamdin, D. (eds) Consumer Knowledge and Financial Decisions. International Series on Consumer Science. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0475-0_15

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