Long-Term Care

 Retirement  Planning is about living the way you want to live.  Including a long  term care discussion in your retirement planning process is often over  looked. There are two key questions that you need to ask yourself for  long term care planning: 

1.   What is your written plan for care?
You  plan to live a long and productive life and at some point you may need  care in your home or in a facility. What is your plan for this?  To have  family members provide care?  Do you believe a long term care illness  or disability will never happen to you? Or that the government will take  care of things?

2.   How would you pay for this extended care?
Your  retirement portfolio might not provide you what you need.  Your  retirement portfolio was established for your retirement lifestyle, not a  long term care situation.  Consider what impact needing long term care  would have on your family and your retirement portfolio. 

3.   How likely are you going to need Long Term Care?
It is estimated that 70% of people over age 65 will require some period of ongoing assistance at some point in their lives.*
*U.S.  Department of Health and Human Services, National Clearinghouse for  Long-Term Care information, www.longtermcare.gov , April 2014

If you need to pay for long term care out of pocket, the costs can quickly add up.  Based on survey data (Genworth 2017 Cost of Care Survey, Conducted by CareScout)found  the national median for a year of nursing home care to be over $97,455  for a private room.  And the national median cost for in-home care from a  health care aide is now $21.50 per hour ($49,192 Annual).  With those  kinds of expenses, it’s easy to imagine a sizable portion of savings  could be needed for long term care needs.
 

LC Advisor Real Life Experience

1 https://www.caregiver.org/print/45

Many  people understand the importance of planning for long-term care  expenses, but in reality, they may postpone it and risk being  unprepared.