How To Plan For Long Term Care Costs In Retirement

How To Plan For Long Term Care Costs In Retirement

There are 65,600 regulated long-term care facilities in the U.S. In general, seven out of every 10 people will require long term care. About 70% of seniors will need some type of care. And to make it more clear, in 2016, roughly 8.3 million people received long-term care services in a regulated facility.

The harsh reality is that most seniors may need care facilities in the future to remain healthy and safe. More than 800,000 Americans reside in assisted living facilities, and this number is only expected to grow. The right way to plan it? Keep reading!

Your plan may include some of the following key points to consider:

These include but are not limited to:

➢ Develop a financial plan to handle long term care costs

➢ Consider the type of care you may require and the associated costs

➢ Review your insurance’s healthcare benefits

➢ Purchase long term care insurance

➢ Figure out which method you’ll utilize to pay for your care

➢ Create a document that has an advanced care plan catered to you

➢ Discuss your plan with people you’re close to

Statistics on Long Term Care Cost:

Medicaid spent $182.8 billion on services and support.

Medicare spent $87.5 billion on services and support.

Consumers spent $63.4 billion out-of-pocket on services and support. This number only continues to increase as we see more and more people not being able to have a financial plan to afford care and needing to take out loans. Overall, because long-term care may be a component of later life expenditures, it should be included in a family’s general financial retirement plan.

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More about the author: Harry Sherdil

As a fiduciary financial advisor at an independent firm, Harry strives to offer the same resources, tools, and research as bigger firms while serving new and existing clients' best interests.