Can You Afford To Live To 100?

Imagine yourself at 100. Your hair, perhaps silver instead of its current shade, still holds a touch of vibrancy. You gather with loved ones, reveling in stories of a well-lived life – a life that may well be your reality thanks to advancements in medicine and lifestyle.

But with the gift of longevity comes a question that could cast a shadow: can your finances support it? Living into your 80s, 90s, or even longer can significantly impact your retirement planning and savings. According to the National Institute on Aging (NIA), a 65-year-old today has a one in four chance of living to 100, a stark contrast to the one in ten chance individuals born in 1900 had. While living a century is a dream for many, the physical, emotional, and financial implications of such longevity require careful planning and preparation.

A Longer Life, a Bigger Bill

Living longer comes with a higher likelihood of needing long-term care (LTC), which can be a significant financial burden. The U.S. Department of Health and Human Services estimates that about 50% of people aged 65 and older will need some form of long-term care services in their lifetime. This can include assistance with daily living activities such as bathing, dressing, using the bathroom, and eating, and can be provided at home, in assisted living facilities, or in nursing homes. 

In addition, the risk of dementia and requiring supervision also increases as you age. The NIA reports that age is the biggest known risk factor for Alzheimer's. Most people with Alzheimer's develop the disease when they are 65 or older. About one in 13 people aged 65 to 84 and one in three people 85 and older are living with Alzheimer's.

The costs associated with long-term care can be staggering. According to the LTC NEWS Cost of Care Calculator, the national median annual cost of a private nursing home room is $111,121, while the median cost for a home health aide is $58,629. These costs increase yearly and can quickly deplete retirement savings and leave individuals and families facing difficult financial decisions.

Planning for the Unexpected

Many financial advisors emphasize the importance of planning for long-term care expenses to ensure your finances sustain you throughout your lifetime.

So, how do you prepare for a life that may last longer than your financial plan anticipated? Here are some strategic steps you can take:

• Start Saving Early: The earlier you begin saving for retirement, the more time your money has to grow through compound interest.
• Work Longer: Consider delaying retirement for a few extra years. This allows you to contribute more to your retirement savings and delay the start of your retirement withdrawals.
• Invest Wisely: Explore a variety of investment options with varying risk profiles to create a diversified portfolio that can grow over time.
• Add Long-Term Care Insurance: LTC insurance can help offset the cost of care, providing peace of mind for you and your family.
• Discuss Long-Term Care Options with Family: Have open and honest conversations with your family about your preferences and expectations for long-term care. This will help them understand your wishes and allow them to plan accordingly.

If You're 100 - How Old are Your Kids?

Long-term care encompasses far more than just financial considerations; it significantly affects family dynamics, placing a considerable responsibility on loved ones who may have to step into caregiving roles. 

Without Long-Term Care Insurance, families are often left to navigate the complexities of providing or managing care themselves. This responsibility can lead to a challenging balancing act as they attempt to juggle their own family and career commitments with the demands of caregiving. 

The situation becomes even more complicated considering the possibility of requiring care later in life, such as in your 80s, 90s, or even at age 100. At this stage, your adult children would likely be seniors themselves, potentially shifting the caregiving burden onto your grandchildren.

The implications of such scenarios underscore the critical importance of securing a Long-Term Care Insurance policy. Having this coverage in place provides a safety net, ensuring that professional care services are accessible without imposing undue stress and financial strain on family members. 

An LTC policy is not just a financial decision but a profound act of consideration for your family's future. It ensures that your care needs are met without compromising the quality of life of your loved ones. By planning ahead with an LTC policy, you provide your family with the greatest gift: the freedom to support you with love, rather than out of obligation, during your later years.

Plus, you ensure you have access to your choice of quality care services, maintaining your control and independence. 

Beyond the Numbers

While financial planning is essential, it's crucial to remember that life at 100 isn't just about numbers. Focusing on your overall well-being is equally important.

• Prioritize Your Health: Maintaining a healthy lifestyle through balanced nutrition, regular exercise, and preventive healthcare can help ensure you remain physically and mentally capable for longer.
• Stay Connected: Social connection is vital for emotional well-being in all stages of life. Nurture relationships with loved ones, engage in meaningful activities and stay connected to your community.
• Embrace New Challenges: Keep your mind and spirit active by learning new things, pursuing hobbies, and volunteering your time. A fulfilling life is not defined by a paycheck; it's about embracing new possibilities and continuing to grow.

Are You Prepared for Old Age?

Living to 100 can be a remarkable blessing; living into your 80s is a blessing, offering the opportunity to see grandchildren grow, witness historical events unfold, and create lasting memories. 

By planning ahead, prioritizing your health and well-being, and embracing the possibilities that come with a longer life, you can make the most of this incredible gift. Remember, longevity is not just about surviving—it's about thriving, contributing, and leaving a lasting legacy.

Planning starts now before you are 100! With Long-Term Care Insurance, the ideal time to add coverage is when you are in your 40s or 50s, but you can find affordable options if you have reasonably good health in your 60s and 70s. Be sure to speak with a qualified Long-Term Care Insurance specialist to help you discover the right coverage based on your age and health.