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Thirty-One Percent of Retirees Would Consider Home Equity to Pay for LTC

Thirty-One Percent of Retirees Would Consider Home Equity to Pay for LTC

As they age, retirees increasingly face the prospect of a large healthcare spending shock for medical issues or long-term care either because their health insurance involves significant cost sharing or they lack insurance entirely.

In a new issue brief, researchers at the Center for Retirement Research at Boston College share recent survey data that sheds light on how people say they might pay for LTC costs and then compare that with what people actually do.

Key results:

  • Over 60 percent of respondents say they would rely on Medicaid, when, in reality, only a small fraction will meet its strict eligibility criteria, according to researchers.
  • While 31 percent say they would consider tapping home equity, the percentage who do is typically much less.
  • Among those who do need LTC services, few find it necessary to move in with their kids, but they do expect to leave them less money.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.