Today’s Costs of Long Term Care
Saving enough money to last through retirement is an ongoing responsibility and one that Americans should take seriously. And the money you may need could be is more than simply replacing the income you had during your career. You also should address potential long-term-care expenses. In 2017, the cost for long-term care in the U.S. increased by 4.5% year over. And with an estimated 70% of people 65 and older needing long-term care at some point in their lives, the majority of people must prepare to meet these expenses.[i]
To help you anticipate just how much money you may need to account for, here are some details to keep in mind:
Long-Term-Care Expenses Are Varied
Long-term care is medical support you may need later in life as a result of old age. This could mean living in a nursing home, having a caregiver, or some other option. While Medicaid can offer seniors some level of financial assistance to meet those expenses, government-funded benefits certainly will not cover everything. Further, not everyone qualifies to receive Medicaid.[ii]
While long-term-care costs can vary by state, here are the national median monthly expenses:
Home Health Care
You receive this care when you opt to stay in your home and have two types of medical support to help you:
- Homemaker Services: $3,994
- Home Health Aide: $4,099
Adult Day Health Care: $1,517
These care centers provide daily (no overnight) support at a facility outside of your home.
Assisted Living Facility: $3,750
These facilities provide 24/7 care for individuals who can live semi-independently.
Nursing Home Care
You may need to move to nursing home care when you can no longer live independently or have at-home care to support you.
- Semi-Private Room: $7,148
- Private Room: $8,121[iii]
Long-Term-Care (LTC) Insurance Can Help
For those looking to boost their financial coverage later in life, long-term-care insurance may can help. People who are 65 and older (or those who have a chronic or debilitating ailment needing ongoing supervision) may also can receive financial assistance to help pay for their LTC needs. [iv] By having LTC insurance, you can help ensure you are not left without care, simply because you cannot afford it.
If you do not have LTC coverage and would like to explore your options, we are happy to help. With proactive financial strategies in place, you can better prepare to have the money you need to enjoy life. To discuss your own financial needs, contact us today.
[i] https://www.prnewswire.com/news-releases/genworth-2017-annual-cost-of-care-survey-costs-continue-to-rise-across-all-care-settings-300525464.html
[ii] https://www.investopedia.com/articles/pf/05/031705.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
[iii] https://www.genworth.com/about-us/industry-expertise/cost-of-care.html
[iv] https://www.investopedia.com/terms/l/ltcinsurance.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
