Matthew Drinkwater of the Life Insurance and Market Research Association(LIMRA) recently reported that “two-thirds of middle-income ($40,000-$99,999) American workers are saving less than five percent of their annual income for retirement – with nearly a quarter saving nothing at all.” (Life & Health Advisor, Nov 2, 2012. East Walpole MA 02032: JonHope Publishing Company, Inc.)

He continued, “While current economic conditions are clearly challenging Americans’ ability to save for retirement, savings habits have not changed significantly over the past two decades. Over this period, employer-sponsored retirement plans have continued to transition from defined benefit plans managed by employers to defined contribution plans where workers are fully responsible for their retirement funds.”

These sobering research results clearly underline the necessity of planning for the cost of long-term care (LTC), which two-thirds of Americans over 65 will require in their retirement years. Since average annual costs for care exceed $60,000.00, elders without reasonably priced LTC insurance will face the unpleasant choice of burdening family members with their care or spending what little retirement funds and other savings they have accumulated and then hoping that Medicaid has enough funds to pay for their care in a nursing home.

The best hedge against this sad future is to learn about LTC insurance and take appropriate action TODAY!