LTC - LTC is a growing problem

Medical problems that use to kill us now just incapacitate. We survive heart attacks and cancer, only to be disabled by Alzheimer's, Parkinson's, arthritis, stroke, surgery, blindness, etc.

Average life spans continue to increase in America. The percentage of the population over age 65 is growing rapidly.

One of the most common financial mistakes is to underestimate how long a life span to plan for. The average 65-year-old lives to 83, so many financial plans assume a life span of 85 to 90.

Big mistake! To begin with, if the average is 83, that means that half the group live longer than that. That's what "average" means.

Secondly, the greatest financial risk to a secure retirement is living a long time, not dying early. Dying early may be a personal tragedy, but it is not a financial tragedy for those who have done appropriate financial planning.

Remember, we don't have a system in the United States where those who die early give their money to those who live a long time. Those who die early leave their estates to their spouse, children, churches, and universities. Those who live a long time must keep funding their retirements out of their own funds.

We don't know who will live a long time, so we must all prepare for it financially.

Also, why will you die so young? My great grandmother died 45 years ago at 96. She ate corned beef till the day she died. That is killer food that the author of this web site doesn't allow himself to eat at age 57. My great-grandmother never exercised, didn't know the word "cholesterol," and received much less sophisticated medical care.

As a nonscientific exercise, find out the age of your oldest relative -- living or deceased. Add five years to that age if you drink moderately, exercise, watch your cholesterol, and don't smoke. Add 10 years to that age If your relative smoked, drank heavily, never exercised and /or didn't watch cholesterol. Use that age as your expected life span.

Stallard, E. Estimates of the Incidence, Prevalence, Duration, Intensity and Cost of Chronic Disability In The US.” Paper Presented at the 2001 Annual Meeting of the Population Association of America, March 29-31, 2001

Finally, the need for professional LTC increased because our children and relatives are less able to assist us:
--Family members are less likely to live in the same town;
--Relatives are too busy -- both spouses work and everyone works long hours;
--Children may have fewer financial resources than their parents;
--Children may be too old to help their parents. A 75-year-old child is unlikely to be able to physically assist a 98-year-old-parent.

Traditionally, most "informal" (from relatives, friends) LTC was provided by women. It might be a wife, mother, daughter or daughter-in-law, but it was women's work.

Today, your daughter/wife/sister is unlikely to be able to take time off from her job as a lawyer, doctor, chef, company executive or telephone lineman to dedicate long hours to caring for you. For those who do, it frequently causes financial, physical or emotional problems. Because of these problems, caregivers often end up needing care themselves.

And who wants their spouse, relative or friend to be their caregiver? Ask your intended informal caregiver to practice. Have them pick you up out of bed, put you on and off the toilet, in and out of the bathtub.

It is physically and mentally difficult for everyone involved. Wouldn't you rather hire someone to do the hard work, and preserve your relationships with the ones you love?

astein@ltcguide.com

The Increased Need For LTC

Need for LTC By Age