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Like many Americans, I’ve never been a natural saver. Although I’ve learned (through painful financial lessons) the value of having a financial safety net, it’s still difficult for me to put and keep money in a savings account, especially when saving is presented as a choice against something I really want — a new car, a remodeled kitchen, a wall-mounted flatscreen, whatever.
I frequently have those angel-on-one-shoulder-devil-on-the-other moments, when I think, “I’ve been soooo good about saving for soooo long [like, a week]. I deserrrrve a reward!”
I thought that maybe Americans with long-term-care insurance think similarly, since recent research http://www.ebri.org/pdf/briefspdf/EBRI_IB_02-2012_No368_ExpPttns.pdf from the Employee Benefit Research Institute shows that LTC buyers over age 50 spend much more than those without it — in every category and overall.
EBRI finds that in 2009, people with LTC coverage had a median total household spending of $47,392, compared to those without LTC insurance, who spent $32,048. In individual categories, the differences are particularly large in health, entertainment and other spending.
Perhaps LTC buyers think, “Hey, I’ve done a good job saving/preparing for long-term care expenses; why not take that extra vacation?”
Are they right? Or, is increased spending among LTC purchasers a poor financial/retirement planning strategy? If it is poor planning, how can retirement education help counter it? Share your thoughts in the comments.
Like many Americans, I’ve never been a natural saver. Although I’ve learned (through painful financial lessons) the value of having a financial safety net, it’s still difficult for me to put and keep money in a savings account, especially when saving is presented as a choice against something I really want — a new car, a remodeled kitchen, a wall-mounted flatscreen, whatever.
I frequently have those angel-on-one-shoulder-devil-on-the-other moments, when I think, “I’ve been soooo good about saving for soooo long [like, a week]. I deserrrrve a reward!”
I thought that maybe Americans with long-term-care insurance think similarly, since recent research from the Employee Benefit Research Institute shows that LTC buyers over age 50 spend much more than those without it — in every category and overall.
EBRI finds that in 2009, people with LTC coverage had a median total household spending of $47,392, compared to those without LTC insurance, who spent $32,048. In individual categories, the differences are particularly large in health, entertainment and other spending.
Perhaps LTC buyers think, “Hey, I’ve done a good job saving/preparing for long-term care expenses; why not take that extra vacation?”
Are they right? Or, is increased spending among LTC purchasers a poor financial/retirement planning strategy? If it is poor planning, how can retirement education help counter it? Share your thoughts in the comments.
