Full service retirement communities are growing in popularity. Commonly known as continuing care retirement communities, or C.C.R.C., these communities promise that its residents can stay for their entire life. Entrance fees can range from a few hundred thousand dollars to more than a million. But what happens if after you have lived there for 10 or 20 years and the owner goes bankrupt or has to raise it fees or reduce services? A recent N.Y. Times article: “7 Ways to Judge a Retirement Community’s Financial Health” offers several keys to consider when looking into the finances of a C.C.R.C. These include: More
Some retirees in China are living in resorts. About an hour from downtown Shanghai, seniors reside in a complex with 2,000 households, a hospital, a worship space, a gym, and a cinema. In order to get in, seniors must buy life insurance from a company called Taikang Life Insurance Co.
According to a Wall Street Journal article, China’s insurance companies have spent $10 billion on retirement communities. The goal is to find a way to care for the 1.4 billion Chinese who will be 60 or older by 2050. Due to the government policy restricting children, the country is not prepared to care for the aging population. More
Despite the use of health care services remaining constant or even declining, spending on health care by Americans who get insurance through work accelerated in 2016. According to the Wall Street Journal, this increase is likely due to rising prices. Research conducted by the Health Care Cost Institute found that there was a 4.6% increase in spending per person in 2016. This is in comparison to a 4.1% increase in 2015 and less than 3% increase in 2014 and 2013.
Niall Brennan, President of the Health Care Cost Institute summarized the problem: “Working Americans are using less care and paying significantly more. That has huge implications for the health-care system, for the overall stability and growth for our economy as a whole. And I think we would probably behoove ourselves [to determine] why prices and spending are so high in American health care.” More
Planning for our future incapacity is something no one wants to do. Yet new research, found that avoiding planning ahead is an especially serious problem in the elderly. Olivia S Mitchell, a professor of insurance/risk management and business economics/policy at the Wharton School of the University of Pennsylvania described her research findings in the Wall Street Journal.
Mitchell found that one reason seniors avoid planning ahead is because they become increasingly impatient with age. For example, seniors in the study were asked the following question:
“Suppose you were given the choice between receiving a payment today or a payment in 12 months. Would you rather receive $100 today or $154 in 12 months?” More