Planning for Long-Term Care

There’s no denying it. Long-term care will be a major expense during the retirement years for most aging Americans.

Medicare will not cover long-term health care needs. Other public programs like Medi-cal do provide long-term care assistance, but require a person to exhaust all their financial resources first in order to become eligible for those programs.

My dear. Pleasant elderly woman smiling and sitting in the wheelchair while her loving granddaughter taking care of her

If you plan on living above the poverty-line during your elder years, then you should consider and factor in the cost of medical expenses into your overall financial plan.  A majority of these medical costs will occur in the last 2 years of life.  Long-term care insurance is an important financial planning strategy that people purchase to protect their assets and income in retirement.

A few telling facts about rising healthcare costs for seniors:

  • ⅓ of all 65-year olds will spend time in a nursing home at some point in the future
  • Seniors age 85 and older are the fastest growing segment of the U.S. population
  • Over 70% of nursing home residents are women[1]
  • Today’s median cost of a semi-private room in a nursing facility is $225 per day or $82,125 per year[2]

In California, today’s median annual cost for various types of long-term care services currently are:[3]

  • $52,624 for home health aide services
  • $48,000 for care in a residential care facility for the elderly
  • $91,250 for a semi-private room in a skilled nursing facility
  • These costs are rising rapidly inflating at 2-5 percent each year

Do you have a strategy to pay for Long-Term care expenses?  At Strategy Squad, we want to help you consider the resources available to you or a loved one to help prepare for future long-term care expenses.  Call us at 888-65-SQUAD (888-657-7823) or  Email us today to schedule a free consultation.

[1] AARP: Women & Long-Term Care Fact sheet