Americans Continue to Say: 'It Won't Happen to Me'; GE Survey Reveals Impact of Caring for Aging Parents Does Little to Motivate Baby Boomers to Prepare for Their Own Care.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--Nov. 17, 2003

As part of the Third Annual National Long Term Care Awareness Week(TM), which begins today, the GE Center for Financial Learning today released "head scratching" results from a national survey. The survey found that, despite what baby boomers see happening to their aging parents, they're still in denial when it comes to their own planning, believing that the difficulties their parents face will never happen to them.

Case in point: the survey found that while almost half (45 percent) of Americans have had a personal experience caring for an aging or ill relative, nearly the same number (46 percent) admit that they have not taken steps to develop long term care plans for themselves.

The study of 1,040 Americans, conducted by Goodmind LLC on behalf of the GE Center, revealed startling inconsistencies between the quality of life most Americans desire, and the planning needed to make it happen. The study found that most Americans have not taken even the most basic planning steps needed for their care during retirement, such as preparing a will or living trust, purchasing long term care insurance, or even discussing the issue with their families. America's lack of preparedness for "care giving" during retirement is disturbing, given that nearly half of Americans aged 65 or older will enter a nursing home at some point during their lifetime. The survey also found just how unprepared most Americans are for health problems during retirement:

-- 87% have not purchased long term care insurance to protect

their assets in the event of a catastrophic health issue.

-- 63% have not created a will or living trust.

-- And more than one-third, 36%, have not taken the steps needed

to prepare for long term health issues that may arise as they

age.

Making It "Real" Spurs Action

Psychology suggests people do not adequately plan because long term care is something that is likely years or decades away and feels more abstract than issues faced today. "Even when we know something is important, we have difficulty translating it into actions we should and can take today," said Dr. Kathleen Gurney, advisor to the GE Center and chief executive officer of Financial Psychology Corporation. Dr. Gurney recommends taking gradual steps towards planning, which will reduce stress and make the process empowering. She also suggests:

-- Visualization - "Spend time visualizing the quality of life

you'd like to have during your retirement. Drawing pictures or

writing down descriptions makes planning less abstract and

more concrete."

-- Develop a "Quality of Life" Game Plan - "Determine all the

elements needed to cultivate and maintain the quality of life

you want during your retirement, including everything from

retirement income planning to caregiving. Dividing these

chores into weekly or monthly actions makes it more

manageable."

-- Schedule Money Meetings - "Schedule time on a regular basis

(at least monthly, but preferably weekly) to discuss the

status of your game plan and make adjustments. Those who take

consistent and consecutive steps, no matter how small, are

better off than those who do nothing at all."

Long Term Care Awareness Week(TM) Encourages Dialogue and Action

The GE Center for Financial Learning is proud to sponsor its third annual Long Term Care Awareness Week(TM), which is reaching out directly to consumers to demystify long term care planning. In addition to Dr. Gurney, this year the GE Center is also teaming with former U.S. Women's Amateur Champion and LPGA golfer Laura Baugh, who has been personally affected by caring for aging relatives, to spread the word. "It is important that my loved ones age with dignity and respect, and planning for long term care is one easy way to honor my parents and my children," said Baugh. "I hope that all families will use this time to discuss this important issue."

One of the aims of the GE Center (www.financiallearning.com) is to redesign the retirement experience and financially empower Americans by providing objective information that helps generations work together to better understand their long term care options. The site is free and helps people look at long term care as a positive part of retirement by providing them with the tools to educate themselves on how to prepare for aging, death of a spouse, and financial independence.

The award-winning GE Center is the first uniquely objective, impartial web-based financial education resource for information on personal financial and life-event planning designed for consumers. Along with long term care issues, the GE Center is dedicated to improving overall financial literacy among Americans. It does not sell financial products or services from any company, nor does it promote or advise on financial products or providers. A 13-person volunteer advisory board upholds the high level of excellence for the GE Center for Financial Learning by ensuring the objectivity of all information provided on the site.

GE Financial, the developer of the GE Center, is the consumer insurance and investment arm of GE Insurance, an integrated family of companies committed to helping people create and preserve wealth, protect assets, and enhance their lifestyles.