We know that 401(k) participants are guilty of excessive extrapolation - they like to look at how good things have been, and assume it will just continue that way.

Jack Vanderhei

Categorized in : Company News

There's probably a lot of false optimism there, there hasn't been enough change in the underlying conditions over the last two years to justify a doubling of 'very confident' households.

I really can't explain why so many people are confident about their ability to pay for long-term care, it might be that they think - wrongly - that Medicare is going to cover it, or maybe they'll just spend down to indigent levels and go on Medicaid. But there's no way this is a justifiable sense of optimism.