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Retirement Saving and Long-Term Care Needs: An Overview

Alexis Ahlstrom,
AA
Alexis Ahlstrom
Anne Tumlinson,
Headshot of Anne Tumlinson
Anne Tumlinson CEO - ATI Advisory
Emily Clements,
EC
Emily Clements
J. Mark Iwry,
J Mark Iwry
J. Mark Iwry Nonresident Senior Fellow - Economic Studies

Jeanne Lambrew,
JL
Jeanne Lambrew Associate Professor, University of Texas School of Public Affairs
Peter R. Orszag, and
Peter R. Orszag
Peter R. Orszag Chief Executive Officer - Lazard
William G. Gale
William G. Gale Senior Fellow - Economic Studies, The Arjay and Frances Fearing Miller Chair in Federal Economic Policy, Co-Director - Urban-Brookings Tax Policy Center

September 1, 2004

Introduction

The nation is aging: The elderly population is expected to more than double by 2030. Yet many households — likely to be somewhere between one-quarter and one-half — are not saving adequately for income and health care needs during retirement. One of the difficult challenges in saving for retirement is the substantial uncertainty associated with long-term care, which can impose massive costs on those who have not insured against the risk. This overview paper documents trends affecting financial security during retirement; examines the financing of long-term care; and then explores the role of pension saving in preparing for financial needs, including long-term care.

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