2008 Brings Beginning of Boomer Early Retirement
By jana on Jan 9, 2008 in Long Term Care
Welcome to 2008! As most of you know, this is the first year that Baby Boomers can take early retirement at age 62 so we expect to see a lot more press on the subject of paying for long term care costs since all those predictions will become reality. Since early retiring Boomers will only have access to 75% of their benefit, it will be interesting to see how many are truly ready to end the rat race.
A recent article in the Pittsburgh Tribune Review titled Retiring Boomers Will Cost Billions gave some specific figures for the cost of long term care as it relates to the retiring baby boomers. The article discussed how many of this generation did not plan for retirement
According to the article, “70 percent of baby boomers will need some kind of long-term care whether in a nursing home or elsewhere, but Social Security and Medicare do not cover those costs, and state Medicaid programs are stretched beyond their limits.” We all know this, but since retirement funds have slowly shifted from a pension based system to a 401(k) and IRA based system, retirees are facing the harsh realities of where to find the funds to support their own long term care.
The article suggests the same general ways to combat retirement cash shortfalls that could lead to a long-term care crisis (going back into the workforce, saving 10% of your income each year, and/or changing the way social service agencies and employers operate) but these have all been suggested before and we still have the same problems…
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