So many Americans are rightfully concerned about long term care expenses and their possible impact on retirement but only a small percentage of individuals select insurance policies to help guard against this risk. In fact, one study found that only around 10% of Americans over age 65 had long term care insurance.
The problem with this is a 2017 Administration for Community Living Study found that 70% of adults turning age 65 will need some form of long-term care in their lifetime and the average length of this care varies from 2.5 to 3 years. The median costs for any type of health care support with regard to long term care varies but the median cost of an assisted living facility is just over $48,000. In-home care costs around $52,000 per year and a private room in a nursing home is over $100,000.
Unpaid family members and friends might have to step in to provide the majority of long-term care for you if you don’t have long term care insurance coverage or a relationship with a knowledgeable attorney who can help you to set up a Medicaid qualification plan as part of your bigger estate plan.
Those who are providing care with no compensation to their loved ones are also possibly putting their own retirement savings at risk because they may be taking family leave time, cutting back on work or not being able to take on additional employment opportunities. Schedule a consultation with an experienced estate planning attorney to learn more about how you can guard against the expenses of long-term care.
