| The sky is darkening and the rain is just beginning to | | | | These four factors, increased demand, lesser private |
| fall on the elderly as a perfect storm in paying for | | | | sector providers, diminished assets and increased |
| long term care approaches. As in the weather version | | | | costs together make up the perfect storm in paying |
| of the perfect storm, the eldercare perfect storm is | | | | for eldercare. However, amid the heavy winds and |
| brewing because of multiple factors coming together | | | | towering waves a few lifeboats can be seen. One |
| at once. | | | | lifeboat comes in the form of bank loans designed |
| The aging baby boomers will lead a huge increase in | | | | specifically for the purpose of paying for long term |
| senior citizens. By 2030, there will be twice as many | | | | care. These unsecured, short-term loans have very |
| Americans over 65 as there was in 2005. With an | | | | rapid approval processes to match the speed at |
| increased population of older Americans coupled with | | | | which the need for long term care can strike. |
| the fact that American are living longer, the demand | | | | Another lifeboat is the emergence of financial |
| for long term care is projected to skyrocket. The | | | | products designed to allow homeowners to use their |
| aging population compounds the problem in a more | | | | home equity to pay for their care. Reverse |
| subtle way. It is estimated the 80% of long term | | | | mortgages have been fairly common in recent years |
| care is provided on an informal or unpaid basis, that is | | | | but there are newer options (available regionally at |
| to say family taking care of family, the young helping | | | | this point) which are better designed for the purpose. |
| the old. The population demographics are such that | | | | There are now tools available online to help seniors |
| the number of younger persons available to provide | | | | and their caregivers to search through the options |
| care is being reduced. In 2008, there were fifteen | | | | available to them to pay for assisted living. Visitors |
| persons between the ages of 25-64 for every one | | | | provide some information about their specific |
| disabled senior. By 2040 there will be only nine; almost | | | | situation. Using this information, the tools are able to |
| a 50% decrease. | | | | search through federal, state, veterans and private |
| Diminishing retirement assets means there will be less | | | | options to find those care and financial resources for |
| money available to pay for care. The stock market | | | | which the visitor is eligible. Usually provided in the |
| meltdown of 2008, of course, has taken its tool but | | | | search results are those options for which they are |
| even more devastating are home values. Today | | | | not eligible as well. Caregivers and seniors can easily |
| almost 80% of retirees own the homes in which | | | | understand why they are not eligible and save |
| they live. As most everyone is painfully aware, home | | | | themselves time and effort conducting further |
| values have declined an average of 30% since 2007. | | | | research. Not all options are financial; the search |
| Making the diminished assets even more problematic | | | | results also help people to better understand |
| is the increased cost of long term care. Scores of | | | | programs that provide some level of coverage such |
| studies including those from MetLife (NYSE: MET) and | | | | as Medicare or their existing health insurance. |
| Genworth Financial (NYSE: GNW) show that cost of | | | | Hopefully by using the better research tools offered |
| Alzheimer's care, assisted living, nursing home care | | | | by the internet, taking advantage of new aid options |
| and other forms of senior housing are outpacing | | | | and pro-actively seeking out care resources, we will |
| inflation and retirement asset growth. | | | | all survive this storm. |