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.
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
- Today’s median cost of a semi-private room in a nursing facility is $225 per day or $82,125 per year
In California, today’s median annual cost for various types of long-term care services currently are:
- $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.