Which Generation Struggles in Retirement Savings?

Due to our constantly changing world and needs, millennials, baby boomers and generation x are continuously facing challenges and one of them is money issues. There is a new study that finds each generation is in a moment of dramatic change in terms of their financial well-being and retirement planning. Take a look at how each generation fairs in today’s economy.

1. Baby boomers

They have an average financial wellness score of 5.7 out of 10. About 29% say they are confident that they can replace at least 80% of their income in retirement, while only 16% have long term care insurance policy.

2. Generation X

This generation has made significant improvements when it comes to their finances in recent years but they are still most likely overwhelmed with financial stress. Only 17% say they are confident that they can replace at least 80% of their income in retirement.

3. Millennials

They have an average financial wellness score of 4.6, the lowest among all generations. However, they will most likely contribute to either Roth 401(k) or Roth RIA. Despite being the only generation not to prioritize retirement planning, they still have time to prepare for this. 

Source: http://www.cheatsheet.com/personal-finance/which-generation-is-worst-at-saving-enough-for-retirement.html/?a=viewall

Does Medicaid Cover Long Term Care?

The oldest baby boomers today are already turning 70. The possibility of requiring long term care is looming even if medical treatments are more advanced now. They are at risk of needing assistance when carrying out their daily living activities like eating, bathing and toileting.  

The cost of long term care is soaring these days, so how can baby boomers cover this? Medicare doesn’t cover the core of long term care. The Veteran’s Administration on the other hand provides some coverage but restricted to VA nursing homes. Long-term care insurance is the most efficient solution but sad to say only a few Americans have bothered to purchase.  Most Americans rely on Medicaid and if you’re of one of those people, here are important things you need to know about Medicaid:

1. Medicaid care takes away choice.
2. Medical and financial qualification is necessary.
3. Exemptions for spouses remaining in community.
4. Avoid Medicaid planning and transfers.
5. Consider Long Term Care Insurance.

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4 Retirement Planning Tips Millenials Can Teach to Baby Boomers

Retirement planning is commonly associated with baby boomers but did you know that millenials can actually give effective tips about this? Millenials are much younger than baby boomers but they are proactive when it comes to developing a sound retirement plan even if they are just starting out in life.

According to a study about the retirement planning behavior of baby boomers, here are four things that they can pick up from millenials and gen X-ers:

1. Spend more time in monitoring your investments and accounts

2. Save aggressively.

3. Talk about it

4. Take charge of your financial future.

Original Source: http://www.ltcoptions.com/4-things-baby-boomers-can-learn-millennials-retirement-planning/