“Rich Retirees Are Hoarding Cash Out of Fear,” by Ben Steverman, ThinkAdvisor

“There’s a time in everyone’s life to save. There’s also a time when you’re supposed to spend. That time is commonly known as retirement. Millions of Americans aren’t doing that, however, which has put the U.S. in a perverse situation. Younger generations aren’t saving enough as their income slips further behind previous generations. Older Americans meanwhile sit atop unprecedented piles of assets built through stock market and real estate booms. (Related: Cash Is the Riskiest Investment for Retirees) Yet these retirees, or at least the affluent ones, aren’t spending it. It turns out they’re afraid of the unknown.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
OK, we get it, affluent oldsters are “hoarding” cash because they’re scared to death of future health care and LTC costs. But cognitive dissonance is a big part of the problem. We frighten consumers by telling them they’ll lose everything if they have a critical illness or need long-term care. Then if the worst happens, government mitigates most of the liability with Medicare and Medicaid. Message sent: be very scared, but not enough to plan early and use the leverage of private insurance to transfer any remaining risk.