Retirement Saving and Long-Term Care Needs: An Overview

Alexis Ahlstrom, Anne Tumlinson,
Headshot of Anne Tumlinson
Anne Tumlinson CEO - ATI Advisory
Emily Clements, J. Mark Iwry, Jeanne Lambrew,
Jeanne Lambrew Associate Professor, University of Texas School of Public Affairs
Peter R. Orszag, and
Peter R. Orszag Vice Chairman of Investment Banking, Managing Director, and Global Co-Head of Healthcare - Lazard
William G. Gale
William G. Gale The Arjay and Frances Fearing Miller Chair in Federal Economic Policy, Senior Fellow - Economic Studies, Co-Director - Urban-Brookings Tax Policy Center

September 1, 2004


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.