Boomers' Uninformed Opinions about Disabilities Could Cause Them Financial Hardships |
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Written by U.S. Insurance News
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Sunday, 16 March 2008 |
Baby Boomers are hedging their bets that they won't suffer a disability that would force them to miss work for an extended amount of time.
But not only are they underestimating the risk of suffering such a disability, boomers don't even know what the likely cause of a disability would be, according to a new Harris Interactive Poll conducted on behalf of America's Health Insurance Plans (AHIP).
The uninformed attitude among this generation about disability shouldn't be taken lightly, warns Karen Ignagni, president and CEO of AHIP.
"Baby Boomers' lack of awareness of their risk of disability presents a significant threat to their financial security," she said. "When individuals underestimate their risk of disability, they are less likely to protect their income and are more vulnerable to the financial hardship that suffering a disability can cause."
According to the Social Security Administration, a worker has a 30 percent chance of suffering a disabling injury or illness causing him or her to miss three or more months of work before reaching retirement. But here's what boomers think, according to the Harris survey:
- About one in three think the chances of becoming disabled due to illness or injury is 5 percent or less.
- A slight majority think the chances are 10 percent or less.
- Two-thirds think the chances are 20 percent or less.
The survey, conducted nationwide among 2,853 adults aged 18 and older, including 828 boomers aged 44-62, also found that nearly half (47 percent) of boomers say they are not too concerned about their chances of suffering a disabling illness or injury.
One reason boomers underestimate their risk is because they are unaware of the most common causes of disability, mistakenly believing that injuries cause more disabilities than illnesses. According to the survey, boomers believe the most common causes of disability are:
- Back, muscle, or joint problems (26 percent).
- Injuries on the job (18 percent).
- Injuries off the job (16 percent).
However, research shows that the most common causes of disability are illnesses, such as cancer, heart disease, and diabetes.
"The survey shows that baby boomers need to be better educated about the risks and causes of disability to ensure they take appropriate steps to protect themselves," observed Humphrey Taylor, chairman of the Harris Poll.
The survey did find that most boomers accurately believe they are more likely to suffer a disability than premature death and that most disabilities occur outside of the workplace.
This is the first in a series of surveys assessing boomers' awareness of and knowledge about disability income protection. The entire survey questionnaire can be found at the AHIP Web site.
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