The U.S. Senate Special Committee on Aging will hold a hearing this Wednesday, May 13 at 3:30 pm ET, “Caught in the Middle: Supporting Families in the Sandwich Generation.” Argentum has been working closely with lawmakers to underscore the critical need to support families with their caregiving needs, particularly the need for more retirement savings opportunities and access to tax-advantages accounts to help pay for long-term care.
Argentum’s updated Value of Assisted Living annual report, released in February, finds that fewer than 1 in 30 Americans—and only about 7% of adults over 50—have long-term care (LTC) insurance. Many people without private LTC coverage try to self-fund care, assuming their retirement savings will be enough. But an Employee Benefit Research Institute (EBRI) survey found that the median worker ages 55–64 has just $125,000 saved for retirement—well below the $250,000–$300,000 experts recommend for a comfortable retirement and essential expenses. U.S. Census Bureau data also show that 42% of near-retirement baby boomers lack a retirement account; Generation X faces similar gaps, with 44% not investing in retirement accounts. Federal Reserve research further indicates that 28% of working-age adults have no retirement savings, up from 25% in 2021.
At the same time, the national retirement savings shortfall is projected to grow from $28 trillion in 2015 to $137 trillion by 2050. A Transamerica Center for Retirement Studies survey found that only 17% of adults 50+ are confident they can maintain a comfortable lifestyle in retirement. Concerns about declining health and long-term care costs are widespread: 41% worry about health problems and 35% about paying for care, yet only 14% of retirees feel very certain they can afford long-term care. Nearly half (46%) of those nearing retirement expect to rely on family or friends if they need help, and 31% have made no plans. If these trends continue, many future retirees could outlive their savings by eight to 20 years.
This is why Argentum is advocating for solutions to include tax reforms, strengthening long-term care insurance, increasing public program reimbursements, and expanding housing supply. We support expanding use of existing tax-advantaged programs such as Health Savings Accounts, Flexible Spending Accounts, 529 education savings accounts and individual retirement accounts to cover long-term care expenses for family members, without incurring taxes or penalties. We will be working closely with the Aging Committee and lawmakers broadly to advance these solutions.