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In the movie “The Perfect Storm”, a commercial fishing boat faced a catastrophic event when it encountered the “perfect storm”, a merging of three independent weather systems that created a hundred-year event. Just as the combination of factors created the destructive force in the story, there are interrelated factors today creating the perfect storm for the future of Long Term Care:
Aging baby boomers Like the cartoon picture of the python that just swallowed its dinner whole, baby boomers are a large population group passing through our society. In 2030, when all the baby boomers will be 65 and older, they will represent nearly 1 in 5 residents of the U.S. The number of people age 85 and older will grow even faster, with nearly half needing assistance with their everyday activities. The sheer numbers will put a growing strain on the human and financial resources available for care-giving. We are living longer The likelihood of needing assistance with daily activities increases as we get older. We are living longer, however it also means many are living with debilitating conditions that were not as prevalent when life expectancies were shorter. The changing family unit Changing family demographics make care-giving in the family less practical than in the past. Families are smaller and more spread across the country. Multi-generation households are less common. Women, who are most often the care-givers, are in the workforce in greater numbers than ever. |
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Care-giver availability
The growing numbers of people needing care is already putting an increasing strain on availability of professional caregivers, which also contributes to driving up costs. Those with the funds to afford it will receive the best care.
Government social services limitations
Given the extreme challenges the government faces trying to continue to fund Social Security, Medicare and Medicaid, the likelihood of creating a massive new social program that would adequately provide comprehensive Long Term Care for everyone is remote at this time. One attempt was made to establish a program of even limited benefits, and it was abandoned due to the projected costs of funding the program being unsustainable.
The combination of these factors creates a Perfect Storm for Long Term Care:
There is a huge population ‘bubble” of baby-boomers passing through our society.
Life expectancies are increasing and we are living longer with debilitating conditions.
The resources of both family and professional care-givers are being stretched.
There is no apparent solution coming from the government.
For these reasons, the potential cost of Long Term Care is perhaps the greatest financial threat to Americans today.
The growing numbers of people needing care is already putting an increasing strain on availability of professional caregivers, which also contributes to driving up costs. Those with the funds to afford it will receive the best care.
Government social services limitations
Given the extreme challenges the government faces trying to continue to fund Social Security, Medicare and Medicaid, the likelihood of creating a massive new social program that would adequately provide comprehensive Long Term Care for everyone is remote at this time. One attempt was made to establish a program of even limited benefits, and it was abandoned due to the projected costs of funding the program being unsustainable.
The combination of these factors creates a Perfect Storm for Long Term Care:
There is a huge population ‘bubble” of baby-boomers passing through our society.
Life expectancies are increasing and we are living longer with debilitating conditions.
The resources of both family and professional care-givers are being stretched.
There is no apparent solution coming from the government.
For these reasons, the potential cost of Long Term Care is perhaps the greatest financial threat to Americans today.
It is important for everyone to consider their potential need at some point for Long Term Care,
and include it as part of their overall financial and retirement planning.
and include it as part of their overall financial and retirement planning.