IRI Report: Most Consumers Lack Confidence in Covering Long-Term Care

Confidence Drops as Consumers Age; Women Are Most Concerned

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released a new research report that found that most consumers lack confidence in covering their long-term care costs in retirement and that already low confidence levels appear to diminish further with age. While only 28 percent of Generation Xers are confident in meeting long-term care costs, that level of optimism declines to 24 percent among Baby Boomers. The trend of decreasing confidence with age was detected across all demographics surveyed, including gender, income and marital status.

"There's an out-of-sight, out-of-mind mentality regarding long-term care," IRI President and CEO Cathy Weatherford said. "As consumers near retirement, the realization sets in that long-term care may be required and many begin to understand just how expensive it can be. Without a plan, the thought of meeting long-term care needs for either an individual or family member can be daunting. Yet when it comes to long-term care, similar to many other facets of retirement planning, the silver lining is that those who consult a financial professional have more confidence in covering the costs during retirement."

The report also found that women have lower levels of confidence in covering long-term care costs in retirement compared to their male counterparts. This is particularly concerning because women tend to have greater long-term care needs, as they live longer on average and are more likely to live into advanced ages when the need for long-term care is greatest. Across both genders, singles and those with income of less than $30,000 per year also had lower levels of confidence in meeting long-term care costs.

While individuals lack confidence in paying for their long-term care expenses, confidence in covering those costs for parents is even more depressed, according to the report. Only 21 percent of Generation Xers and 14 percent of Boomers were confident in meeting these costs for their parents.

The full report can be found HERE.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry.  Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: Our members are the major insurers, asset managers, broker dealers, and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit today to experience the vast resources of the Insured Retirement Institute for yourself.     

 -- END --