“Failure to factor in LTSS costs ‘most significant risk’ to retirement income,” by Kathleen Steele Gaivin, McKnights Senior Living
“Yet another study has found that many Americans do not factor their potential need for long-term services and supports into their retirement savings plans. The latest research comes from the Morningstar Model of US Retirement Outcomes. … The findings show that ignoring potential LTSS costs presents an overly hopeful view of retirement readiness. When LTSS costs are included in a simulation of retirement income, 41% of households are projected to run short of their needs, compared with just 26% when LTSS costs are excluded.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
More bunk from the people who want you to think the public is more at risk for LTC costs than they really are. We’ve debunked that nonsense here and here for decades. Do you really think people would ignore LTC risk and cost if they were as high as studies like this one say they are? Closer to the truth is this quote from Andrew Biggs of the American Enterprise Institute: “[A]ssuming that retirees pay nothing for long-term care is actually closer to the truth than Morningstar’s assumption that seniors pay 100% of costs out of pocket, given that we know seniors actually only pay about 14%.” (Source)