A new report by the Center for Retirement Research at Boston College finds that nearly two-thirds of U.S. households are at risk of being unable to maintain their standard of living in retirement when possible long-term care costs are taken into consideration.

The report, Long-Term Care Costs and the National Retirement Risk Index, looks at the percentage of households that would fall significantly short of their target retirement income if they do what they can to prepare for the possibility of long-term care costs, on top of health care and other post-retirement expenses.

The National Retirement Risk Index (NRRI) shows that even if households work until their 63 and annuitize all of their financial assets (including a reverse mortgage), 44 percent will be unable to maintain their standard of living in retirement.  When you factor in health care costs, the percentage of households at risk increased to 61 percent. 

One thing is clear from the report, reverse mortgages certainly help lower the risk of retirees not being able to maintain their lifestyle, but it might not be enough.  The report’s authors conclude that their findings "raise major concerns about the retirement security of baby boomers and succeeding generations."

Long-Term Care Costs and the National Retirement Risk Index