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Think Long

July 18, 2022

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Long-term care in retirement can be quite expensive.

Chances are, when you think of saving for your golden years, you think of some fun things — like traveling — and some not-so-fun things, like the cost of prescriptions. However, if you’re not planning for long-term care expenses, you are likely in for some trouble.

According to a recent report, the average cost for a semi-private nursing home room is $94,900 per year. The average cost for a private room is a whopping $108,405 per year. If you don’t budget for at least some of those costs, you could end up depleting your savings on long-term care alone. This is the part where you think “I’m fairly healthy. I bet I won’t need long-term care.” Well, think again. A recent study found that a person who turns 65 this year has almost a 70 percent chance of needing long-term care at some point in their life. That means you need to face reality. There’s a good chance you’ll need long-term care and therefore, you need to figure out how you’ll pay for it. As USA Today notes, there are three main methods:

 

Pay out of pocket. 

This is the hardest route, as it will take lots of planning and even more saving.


Long-term care insurance. 

This can be a good option, just make sure you buy in when you’re young so you avoid premiums becoming expensive. Also make sure the policy is comprehensive so that your long-term care is covered.


Use Medicaid.

Medicaid is a good choice, as it covers long-term care. However, it takes a lot of effort and cutting through red tape to get there.

Your best option for long-term care costs might be combining one or two of those methods. Whatever you do, just make sure to get started now.

 

 

This article was originally posted on savvymoney.com 

 

The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank, PurposeBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

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