I noticed this article in TIME that talks about a method to reduce the burden of the upcoming baby boomer’s reaching retirement age. One way insurers are trying to address to the high cost of anticipated assisted living and other elder care is with “life style” planning similar to mutual funds. The plans allow you start with small investments and then start adding more coverage as get closer to actually needing the elder care.
I wonder if enough people would buy these plans to make a significant difference in the expected influx of elder when the baby boomers retire? I would lean towards people being scared about Medicare not being able to cover this influx with all the attention the issue has been getting, but there are also statistics out there how people grossly underestimate their actual end of care needs and the idea that baby boomers are in denial of their own aging and economic burden. Although the plans have an inherent social economic exclusivity that doesn’t really present them as a solution to the problem, maybe it could help.
http://www.time.com/time/magazine/article/0,9171,1838769,00.html
