Financing for the Future

According to a new Northwestern Mutual Study only 28% are currently saving for future LTC needs. The study also revealed that 77% accepted that there is a demand for future LTC use but just about half, at 45%, mention that they are not exactly sure how they plan to address those needs. What disturbs me is that the majority of Americans have acknowledged the necessity to save but still neglect to do so. Clearly, there is a major misunderstanding on the severity of the issue at hand or just plain ignorance.

What is going to happen when the baby-boom generation begins to collect social security? According to the Bureau of Census, the number of elderly people in the United States will double between 2000 and 2030. With the number of collectors drastically increasing, higher costs, and life expectancy on the rise, the demand for LTC will be astronomical.

I believe in order to solve this predicament, health care leaders will need to deliver more education to Americans. Education is a very powerful tool and by gaining a full understanding people will become empowered and capable of making better decisions. Without future planning, the government is going to fall into a bigger financial crisis.

Another interesting point the study made was that people who have experience in care giving are twice as more likely to finance for the future. I assume this is true because they have more education on this topic and can picture themselves by being surrounded in that environment. They see themselves growing old and planning out the rest of their life.

Looking into the future of LTC, balancing costs will continue to pose a vital ethical dilemma. Access and quality are such significant components to care and economizing on even one of them will develop major consequences. When analyzing the current trend Americans continue to follow, by not financing for future LTC needs, I really do not see much hope for the future. Because costs are going to be the number one issue it’s apparent that access and quality will have to be sacrificed.

Financing for the future is a vital role in the life of any human being. As a future leader of the health care industry I want to educate my society on the importance of being fiscally responsibly.


Sources
1. http://seniorhousingnews.com/2011/11/06/most-realize-need-for-long-term-care-planning-but-only-28-are-saving/
2. http://www.cbo.gov/publication/15584