Skyrocketing Health Care Costs Draining Older Americans' Savings, Threatening Wealth Transfer to Younger Generations

Health care costs are depleting many older Americans' savings, leaving less money to transfer wealth to younger generations. Over 1/3 of Medicare beneficiaries report struggling with health care costs.

Researchers predicted baby boomers would transfer $72 trillion to younger generations, but high medical expenses may prevent that. Over 25% believe long-term care costs will reduce inheritances.

Health care price inflation is over 100% since 2000. Average annual nursing home costs exceed $108,000. 60% of costs come after age 65.

To afford care and leave a legacy, options include long-term care insurance (if still in 50s), annuities to guarantee income (in 60s), Medicaid (for low-income), or sell assets like cars and jewelry.

Middle class is left with few choices. "Either you're upper class or lower class” to afford care nowadays without going broke, says one couple struggling. The "great wealth transfer" to younger generations may happen less than predicted.