Baby Boomers Worried About Health Care Costs
A new survey has found that baby boomers in America are worried about rising health care costs, which could deprive them of their financial independence. There are 77 million boomers in the US, born between 1946 to 1964.
Boomers say financial concerns outweigh other fears like dying, contracting a major disease, or losing some of their abilities. They have been put under more pressure by social security challenges, rising health care expenses, the stagnant economy and expectancy of longer lives.
The poll was co-conducted by Associated Press. It found that 43% of boomers were extremely worried about medical costs. 41% revealed losing financial independence was their biggest fear.
Many of the older boomers are covered by pension benefits, social security and medical insurance. But, the younger lot face concerns about medical care, housing, social security and pension.
As a result, many boomers have postponed their retirement. Some of them continue to work even in their 70s. About seven percent of boomers aged more than 75 were working in 2010.
Health care costs are a major headache for boomers. A recent study has revealed a couple aged 65 retiring in 2011 with Medicare coverage would still require about $230,000 to pay for their medical costs after retirement. This projection does not include the expenses involved in living in an old-age home.
About 83% of boomers surveyed revealed they are not covered by long-term care insurance, which pays for the cost of nursing homes. Premiums for this insurance are expensive going up to $8,000 each year.