Preparing and Paying for the Cost of Care as We Age
Two in five U.S. adults do not think they will have enough
money to finance their own potential long-term care needs as they age and
another one-third are not sure if they will have enough
ROCHESTER, N.Y. – February 1, 2006 – A new Wall Street Journal
Online/Harris Interactive® Personal Finance Poll finds that only a
quarter (26%) of U.S. adults think they have or will have saved enough money to
finance their own potential long-term care needs as they age. Fully 41 percent
do not think they will have enough money to cover their expenses as they age and
33 percent are not sure. Adding to the financial strain, many adults may have to
finance some of the costs associated with their parents’ potential long-term
care needs, with more than a quarter (28%) of adults whose parents are still
living saying that they and/or their siblings will be sharing these cost with
their parents and 14 percent saying that these costs will fall primarily on them
and/or their siblings.
These are some of the results of the online survey of 2,918 U.S. adults
conducted between January 10 and 12, 2006, for The Wall Street Journal Online’s
Personal Journal Edition.
Other interesting findings from the survey include:
- Of concern, substantial numbers of those closest to retirement age (56% of
adults aged 45 to 54 and 39% of adults aged 55 and over) do not think they
will have enough money to finance their own potential long-term care needs
as they age.
- As expected, those with higher incomes are more likely to say that they
will have enough money to finance their own potential long-term care needs.
However, even at the highest household income level measured ($75,000 or
more annually), only two in five (40%) say they will have enough money to do
so.
- When asked about steps they have taken to prepare for their own aging,
less than half (48%) of adults say they have taken any steps to prepare.
Almost a third (31%) say they have created a will, while smaller numbers say
they have set aside funds to be used for a retirement community/assisted
living community/nursing home (11%), talked to their children about plans
for their elderly care (9%), and/or purchased long-term care insurance (9%)
among other things.
- While three percent of all adults have at least one of their parents
living with them in their household, 41 percent of those whose parents are
still living have taken other steps in preparation for their parents getting
older. Some steps taken include talking with their parents about plans for
their elderly care (22%), helping their parents set up a will (12%), and
helping their parents relocate to be closer to them, their sibling or
another person who would provide support or care (8%).
TABLE 1
LIVING SITUATION – BY AGE
"For the following questions please assume that a parent
may constitute your birth parent, foster parent, step-parent, in-law, guardian,
grandparent, or other individual that has raised you."
"Which of the following applies to you?"
Base: All adults
|
|
|
Age |
|
Total |
18-34 |
35-44 |
45-54 |
55+ |
|
(n=2,918) |
(n=873) |
(n=563) |
(n=508) |
(n=974) |
|
% |
% |
% |
% |
% |
|
Parents still living (Net) |
69 |
98 |
92 |
72 |
26 |
|
Live with at least one parent (Sub-net) |
15 |
36 |
12 |
5 |
2 |
|
I live with at least one of my parents in their household |
12 |
32 |
8 |
4 |
1 |
|
At least one of my parents lives with me in my household |
3 |
4 |
4 |
1 |
1 |
|
I do not live with my parents |
54 |
62 |
80 |
67 |
24 |
|
My parents are deceased |
31 |
2 |
8 |
28 |
74 |
Note: Percentages may not add up to 100% due to rounding.
TABLE 2
PRIMARILY RESPONSIBLE FOR LONG TERM CARE NEEDS OF YOUR PARENTS
– BY AGE
"Thinking about the potential long-term care needs of
your parent(s) as they get older, who do you expect will be primarily
responsible for financing those needs, such as costs associated with
community/assisted living or nursing home care or medical costs?"
Base: Parents still living
|
|
|
Age |
|
Total
(n=2,023) |
18-34
(n=865) |
35-44
(n=527) |
45-54
(n=373) |
55+
(n=258) |
|
% |
% |
% |
% |
% |
|
Primarily my parents |
37 |
28 |
38 |
46 |
49 |
|
My parents and I and/or my siblings will be sharing the costs |
28 |
33 |
27 |
20 |
22 |
|
Primarily me and/or my siblings |
14 |
16 |
13 |
15 |
13 |
|
Other |
5 |
2 |
5 |
6 |
10 |
|
Not sure |
16 |
21 |
17 |
13 |
6 |
Note: Percentages may not add up to 100% due to rounding.
TABLE 3A
FINANCE OF OWN POTENTIAL LONG-TERM CARE – BY AGE
"Do you think you have/will have saved enough money to
finance your own potential long-term care needs as you age, such as costs
associated with community/assisted living or nursing home care or medical
costs?"
Base: All adults
|
|
|
Age |
|
Total (n=2,918) |
18-34 |
35-44 |
45-54 |
55+ |
|
(n=873) |
(n=563) |
(n=508) |
(n=974) |
|
|
% |
% |
% |
% |
% |
|
Yes |
26 |
29 |
23 |
20 |
28 |
|
No |
41 |
30 |
46 |
56 |
39 |
|
Not sure |
33 |
41 |
31 |
24 |
33 |
Note: Percentages may not add up to 100% due to rounding.
TABLE 3B
FINANCE OF OWN POTENTIAL LONG-TERM CARE – BY INCOME
"Do you think you have/will have saved enough money to
finance your own potential long-term care needs as you age, such as costs
associated with community/assisted living or nursing home care or medical
costs?"
Base: All adults
|
|
|
Income |
|
Total (n=2,918) |
Less than 35K |
$35K - $49.9K |
$50K-$74.9K |
$75K+ |
|
(n=803) |
(n=412) |
(n=466) |
(n=673) |
|
% |
% |
% |
% |
% |
|
Yes |
26 |
13 |
18 |
32 |
40 |
|
No |
41 |
57 |
46 |
39 |
30 |
|
Not sure |
33 |
30 |
36 |
29 |
30 |
Note: Percentages may not add up to 100% due to rounding.
TABLE 4A
PREPARATION FOR AGING OF PARENTS – BY AGE
"Which of the following steps have you taken in
preparation for your parent(s) getting older?"
Base: Parents still living
|
|
|
Age |
|
Total
(n=2,023) |
18-34
(n=865) |
35-44
(n=527) |
45-54
(n=373) |
55+
(n=258) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for parent(s) getting older (Net) |
41 |
26 |
44 |
53 |
65 |
|
Talked with my parent(s) about plans for their elderly care |
22 |
16 |
25 |
26 |
32 |
|
Helped my parent(s) set up a will |
12 |
5 |
13 |
15 |
25 |
|
Helped my parent(s) relocate to be closer to me/my sibling/another
person who will be providing support/care |
8 |
3 |
6 |
17 |
16 |
|
Relocated to be closer to my parent(s) |
6 |
4 |
7 |
10 |
6 |
|
Spent money on making my home or my parents’ home elder-friendly |
6 |
3 |
8 |
7 |
7 |
|
Set aside funds to be used for a retirement community/assisted living
community/nursing home |
3 |
3 |
4 |
3 |
5 |
|
Helped my parent(s) pay for a retirement community/assisted living
community/nursing home |
2 |
2 |
3 |
2 |
4 |
|
Purchased long-term care insurance for my parent(s) |
2 |
2 |
3 |
1 |
1 |
|
Other |
10 |
5 |
7 |
17 |
20 |
|
I have not taken any steps in preparation for my parent(s) getting
older |
59 |
74 |
56 |
47 |
35 |
Note: Multiple-response question.
TABLE 4B
PREPARATION FOR AGING OF PARENTS – BY INCOME
"Which of the following steps have you taken in
preparation for your parent(s) getting older?"
Base: Parents still living
|
|
|
Income |
|
Total |
Less than 35K |
$35K - $49.9K |
$50K-$74.9K |
$75K+ |
|
(n=2,023) |
(n=543) |
(n=280) |
(n=334) |
(n=486) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for parent(s) getting older (Net) |
41 |
32 |
39 |
50 |
44 |
|
Talked with my parent(s) about plans for their elderly care |
22 |
15 |
24 |
27 |
27 |
|
Helped my parent(s) set up a will |
12 |
7 |
11 |
18 |
15 |
|
Helped my parent(s) relocate to be closer to me/my sibling/another
person who will be providing support/care |
8 |
7 |
14 |
7 |
9 |
|
Relocated to be closer to my parent(s) |
6 |
8 |
10 |
7 |
4 |
|
Spent money on making my home or my parents’ home elder-friendly |
6 |
3 |
5 |
9 |
6 |
|
Set aside funds to be used for a retirement community/assisted living
community/nursing home |
3 |
1 |
2 |
4 |
5 |
|
Helped my parent(s) pay for a retirement community/assisted living
community/nursing home |
2 |
* |
4 |
2 |
2 |
|
Purchased long-term care insurance for my parent(s) |
2 |
2 |
2 |
2 |
3 |
|
Other |
10 |
7 |
7 |
13 |
9 |
|
I have not taken any steps in preparation for my parent(s) getting
older |
59 |
68 |
61 |
50 |
56 |
Note: Multiple-response question.
TABLE 5
PREPARATION FOR YOUR AGING – BY AGE
"Which of the following steps have you taken in
preparation for yourself getting older?"
Base: All respondents
|
|
|
Age |
|
Total
(n=2,918) |
18-34
(n=873) |
35-44
(n=563) |
45-54
(n=508) |
55+
(n=974) |
|
% |
% |
% |
% |
% |
|
Have taken steps in preparation for self getting older (Net) |
48 |
21 |
40 |
49 |
78 |
|
Created a will |
31 |
8 |
22 |
33 |
57 |
|
Set aside funds to be used for a retirement community/assisted living
community/nursing home |
11 |
6 |
10 |
12 |
16 |
|
Have talked with my child/children about plans for my elderly care |
9 |
2 |
2 |
11 |
20 |
|
Purchased long-term care insurance |
9 |
4 |
10 |
9 |
14 |
|
Spent money on making my home elder-friendly |
7 |
1 |
3 |
7 |
14 |
|
Relocated to be closer to my child/children |
2 |
1 |
1 |
1 |
5 |
|
Moved into a retirement community/assisted living community/nursing
home |
1 |
1 |
1 |
* |
3 |
|
Agreed with my child/children that one/all will relocate to be closer
to me |
1 |
1 |
1 |
* |
2 |
|
Other |
11 |
7 |
10 |
12 |
15 |
|
I have not taken any steps for myself in preparation for getting
older |
52 |
79 |
60 |
51 |
22 |
Note: Multiple-response question.
Downloadable PDFs of The Wall Street Journal Online/Harris Interactive
Personal Finance Polls are posted at http://www.harrisinteractive.com/news/newsletters_wsjfinance.asp.
Methodology
Harris Interactive® conducted this online survey within the
United States between January 10 and 12, 2006 among a nationwide cross section
of 2,918 adults aged 18
and over. Figures for age, gender, race/ethnicity, education, income and region
were weighted where necessary to align with population proportions. Propensity
score weighting was also used to adjust for respondents' propensity to be
online.
In theory, with probability samples of this size, one can say with 95 percent
certainty that the overall results have a sampling error of plus or minus 3
percentage points of what they would be if the entire U.S. adult population had
been polled with complete accuracy. Sampling error for the various sub-sample
results is higher and varies. Unfortunately, there are several other possible
sources of error in polls or surveys that are probably more serious than
theoretical calculations of sampling error. This includes refusals to be
interviewed (nonresponse), question wording and question order, and weighting.
It is impossible to quantify the errors that may result from these factors. This
online sample is not a probability sample.
These statements conform to the principles of disclosure of the National
Council on Public Polls.
About the Survey
The Wall Street Journal Online/Harris Interactive Personal Finance Poll is an
exclusive poll that is published in the Personal Journal Edition of The Wall
Street Journal Online at www.wsj.com/personaljournal.
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