Preparing for a person’s financial future is an important aspect of budgeting and strategizing for everyone, no matter what age they are. This can become vital, especially when issues beyond just general retirement living are considered. Setting a foundation to pay for medical expenses later in life is important, especially if it works to factor in long-term care.
More than 40 percent of Americans think their costs for long-term care will be taken care of by either Medicare, Medicaid, health insurance or some other type of health-related policy, according to a report from Northwestern Mutual. However, this is not usually how these plans work.
Only 25 percent of those who don’t care for someone in the aforementioned situation think their situation will prevent them from spending as much time with family or friends, the report explained. Despite this, more than one-third of those who take care of someone noted that it would actually change the frequency of them spending time with others.
“People are living longer, so the need for care is very real,” said Steve Sperka, vice president of long-term care at Northwestern Mutual. “Planning ahead and putting solutions in place for potential care needs gives families options and helps protect retirement nest eggs.”
Those who would be willing to care for another person may not know how this will affect them. The report added that close to 25 percent explained they were not certain of how their life would be changed by this situation, whether it be lifestyle, financial or even career related.
More Americans look at retirement as unlikely prospect
While many Americans are interested in retirement, there may be a notable number who are not planning on this actually being a part of their lives.
Nearly 35 percent of those polled by Wells Fargo noted that they would be working until they were 80 years old, as their retirement accounts would not be strong enough before then. This is slightly higher than the previous year’s level of 30 percent, as well as the 25 percent noted in 2011.
“We do this survey every year and for the past three years, the struggle to pay bills is a growing concern and the prospect of saving for retirement looks dim, particularly for those in their prime saving years,” said Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust.