Planning for aging is important.
Getting older is a part of life.
Unfortunately, it is a reality many ignore.
According to a recent Think Advisor article titled “Now You Can Add Long-Term Care to Death and Taxes,” few people are planning financially for this reality.
They do not think they will ever need long-term care.
In fact, only 46 percent foresee this as a part of their future.
Nearly 70 percent of Americans will require long-term care.
How much does long-term care cost?
Out-of-pocket costs easily run more than $47,000 annually at the very low end.
Most people estimate the costs to be about $25,350.
Some semi-private nursing homes are about $85,000.
Private nursing home care is even more at $97,455.
These are significant numbers.
Unfortunately, about 64 percent have saved nothing for long-term care.
About 67 percent are unable to contribute to the long-term care of a parent.
As you can see, there are a lot of misconceptions about long-term care.
But there are more.
Many do not accurately estimate when they will begin needing long-term care.
Most estimate it to be about age 79.
On average people require long-term care starting at age 73.
Most men will need it for 2.2 years.
Most women will need it for 3.7 years.
Remember to consider the cost of care and the quality of care as well as the proximity to loved ones when you are selecting a long-term care facility.
Do not be caught off guard.
Have discussions now with your loved ones about long-term care, then come up with a plan to pay for it.
Reference: Think Advisor (August 6, 2018) “Now You Can Add Long-Term Care to Death and Taxes”