I have always been a big fan of Howard Gleckman, author of Caring for Our Parents. In fact, he was the very first person I interviewed for my Leaders in Elder Care series. If you aren’t familiar with Howard’s blog, you’re really missing out on a complete play-by-play of how the health care debate is impacting the cost of senior care.
This morning, he shared some startling statistics about paying for elder care that I have quoted below. In this article, Howard has links to some fascinating studies about the out-of-pocket costs for seniors, and it is shocking. It is mind-boggling to me how financing elder care will be solved as we move forward. He wrote:
A typical couple would have to save nearly $200,000 to pay for their out-of-pocket medical costs from the time they are 65 until they die, according to an important new study by the Center for Retirement Research at Boston College. Add in nursing home costs, and they are likely to need $260,000.
But that’s only part of the story. About 5 percent of 65-year-old couples will face catastrophic medical and long-term care costs exceeding $570,000, according to researchers Anthony Webb and Natalia Zhivan.They estimate those expenses would have exhausted the total financial assets of 85 percent of all retirees even at the peak of the stock market in 2007.
As someone who has first-hand experience with out-of-pocket expenses and my Mother’s care, I was still so stunned by these numbers, that I could not write a conclusion to this article. What do you say?
Obviously, I encourage you to check out Howard’s writing. In the meantime, what are your thoughts about these big numbers?
Photo: bubble dumpster