Affluent Americans are concerned that health care and long term care costs will wipe out much of their wealth, according to a survey by the PNC Financial Services Group Inc., Pittsburgh.
The survey found 36% of nearly 1,500 affluent adults fear health care costs eventually will devour a major part of their financial assets. The worry is highest among those aged 45 to 64 (43%) and those with less than $1 million in investable assets (44%). Among those over 65, 25% admit to this concern.
Although economic issues such as stock market performance and inflation were respondents' top financial fears, health care also was seen as among the biggest threats to their family's wealth.
For example, 42% feared Medicare would eventually become insolvent. Among those with less than $1 million in investable assets, 49% expressed that fear. Among those aged 45 to 64, 49% feared Medicare failure.
Thirty-six percent also feared they would ultimately need expensive medical treatment or long term care. This was a concern for 42% of those with under $1 million in investable assets, but even 32% of those with more than $1 million had that fear. By age group, devastating health costs were feared by 37% of those 18 to 44, 42% of those 45 to 64 and 28% of people over 65.
For those with children under 18, 14% expressed the fear that their own children would ultimately have to pay for the parents' long term care. The concern was greater for women (18%) than for men (12%). It was highest for those 18 through 44 (28%).
Of those with living parents, 24% were worried about their parents' lack of LTC insurance.
Yet 69% of all respondents did not have any LTC insurance, including 74% of those aged 18 to 44, 73% of those aged 44 to 65 and 62% of those over age 65.
The top reasons respondents cited for not buying LTC coverage: the possibility they would never use it (36%) and cost (22%).
