The Lurking Wolf in Retirement Planning

Despite the odds, many people fail to consider the consequences of long-term care costs when putting together their retirement plan. The future costs and burdens of aging will have a big impact on family and finances..
Updated: August 26th, 2020
James Kelly

Contributor

James Kelly

Do you have a birthday coming up? All of us, hopefully, will at some point during the year. However, an upcoming birthday reminds us of where we have been and where we might be headed in the future.

There is a wolf out there, lurking to attack your future retirement and make your life and your family's life stressful. You might not have thought much about it, but you should be right now.

Think About the Past 20 Years - Then Look Forward

Just think about the last twenty years. How has your body changed during that time? Perhaps you gained weight? Maybe you had some health issues. You probably on medications for blood pressure or cholesterol. Most likely, you have an occasional ache or pain you didn't have before.

It's normal. It is part of the aging process everyone goes through sooner or later. Now take a moment and think about the next 20+ years. If you are age 50, you will be 70. If you're 60 in twenty years, you will be 80 years old. Do you think there will be changes in your health, your body, and your mind?

Are You in Denial?

Only a person in denial of reality will say they will face no challenges. The changes in your health, body, and mind will likely mean you will become dependant on other people to help you with normal living activities. You might require some supervision due to memory problems.

Will your spouse take care of you? Unless your spouse is 20 years younger than you, the answer is probably not ... they are aging as well. How about your children? Not only are your kids getting older themselves, but they also have their careers, families, and responsibilities. Besides, do you really want your children to help you bathing or going to the bathroom? Of course not.

Have you prepared your family and finances for the upcoming costs and burdens associated with aging? Two out of three Americans aged 40 and older are not saving for long-term care. Research says that many of us will need long-term care services at some point in our lifetime, but we ignore the problem according to a poll by the Associated Press-NORC Center for Public Affairs Research. 

Health Insurance and Medicare Will Not Pay for Most Long-Term Care

An Associated Press-NORC survey finds about 25% of Americans mistakenly believe that Medicare or traditional health insurance will cover their future long-term health care needs. The fact is these health plans will not pay for long-term care other than a limited amount of skilled care.

Most long-term care is custodial, which means help with everyday living activities. This custodial care includes the supervision many of us will require due to some form of dementia. 

The impact on long-term care on your future or current retirement should scare you. The LTC NEWS Cost of Care Calculator indicates facility care in a nursing home averages nationally over $100k a year. The care you get at home or an assisted living facility is not that much less. 

The cost of care does vary based on where you live. You will be able to see the financial impact on the calculator. The cost of long-term care changes your lifestyle and legacy. However, long-term care is more than just about money.

Family Become Caregivers - Is That Realistic?

Often the default caregiver becomes a family member, generally a daughter or daughter-in-law. The stress and pressures are tremendous and adversely impacts their life as well.

Remember, long-term care is both a cash flow issue and a family issue. Planning is essential to ensure a successful future retirement.

Lenny Sanicola, a contributor to the Huff Post, talks about his experience of approaching birthday and thinking about long-term care. Read his article by clicking here.

LTC Insurance is an Affordable Solution

Don't allow the wolf to destroy your retirement or place a burden on those you love. An affordable Long-Term Care Insurance policy will give you access to the type of quality care you want and where you want it. Most people prefer to stay in their own home, but sometimes an assisted living may be a good choice.

The bottom line is with an LTC Insurance policy you maintain control and independence. Your family will enjoy the time being family and not having the responsibility of being your caregiver.

Experts suggest obtaining coverage in your 40s and 50s when you still enjoy good health as these policies are medically underwritten and priced, in part, by the age when you obtain coverage. 

Better speak with a Long-Term Care Insurance specialist since most insurance agents and financial advisors have little working knowledge or expertise in this area. 

You can find a trusted and experienced specialist by clicking here.

Don't delay since the wolf is lurking.

 

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