72% of Americans surveyed think they would not be able to provide adequate care for a loved one.*
Long-term care expenses continue to rise. Learn what various caregiving services cost around the nation.
95% of advisors believe it’s important to consider long-term care expenses as part of your retirement plan.*
If you think a healthy lifestyle could prevent you from needing long-term care, think again. Being healthy may lead to living a long life, and longevity increases long-term care risk.
People tend to downplay their personal risk. About a third of Americans surveyed think they will need long-term care, while they are much more likely to believe their spouse will (40%) or a parent will (50%). The reality is the actual risk is higher for everyone.1
If qualified, Medicare may only cover a portion of skilled nursing costs up to 100 days. And Medicaid is only available to those with limited assets and income.2
Many Americans significantly underestimate long-term care costs, assuming the average annual cost of a private room in a nursing home is approximately $54,000 — roughly half the true cost.
The burden of caregiving usually falls on the women in the family. The overall cost to a female caregiver is estimated to be nearly $325,000 due to lost wages and diminished working hours.3
Women are more likely than men to become family caregivers. They’re also more likely to need care.3, 4
Advisors believe that Americans should start the process at age 50,1 but there are affordable options that enable you to get started earlier.
2Qualified long-term care expenses may be considered tax-deductible if they are necessary, diagnostic, preventative, therapeutic, treatment and rehabilitative services, and maintenance or personal care services needed by a chronically ill person, based on a plan of care prescribed by a licensed health care practitioner. To be considered chronically ill, the person is not able to perform at least two of the activities of daily living for a minimum of 90 days, or they require significant supervision due to severe cognitive impairment.
Get ready to talk about your plan. Use this workbook to help you get started.
Make sure you’re on the same page.
Discuss your plans and their plans.
Find the right option to fit your financial plan.
Let your loved ones know your preferences. Think about where you want to retire. Find out what the costs of different types of services may be where and when you retire.
While caregiving is very noble, long-term care can involve some of the most intimate aspects of daily living, and often untrained people may feel uncomfortable or unable to provide this type of support. Share your expectations with your loved ones and encourage them to discuss their intentions with you.
Designate who has authority to discuss medications and treatment, and inform your physicians. Give your designee your doctors’ contact information.
Let your loved ones know how you will cover the costs of care. Also establish who will have the authority to manage your finances, including paying the household bills.
Make sure you and your loved ones have a living will, a current will, a durable power of attorney, and a power of attorney for healthcare.