According to the Department of Health and Human Services (I know I’m quoting a government source), 70 percent of all people over age 65 will need some form of long-term care in their lifetimes. This is also confirmed by other non-government sources.
The statistics are frightening. I talk to many that would add paralyzing. They don’t know what to do. Think now of your 10 closest family members: parents, siblings, cousins, etc. Seven of those will need care at some point during their lives.
The average person will require care for three years and 20 percent will require long term care for five years or more. With costs currently ranging from $95,000 to $110,000 per year (national median), very few Americans will be able to afford care. And the cost of care continues to rise with inflation. Over half think they will be able to pay this from their savings.
Being unprepared for long-term care can wreak havoc on the best of retirement plans. This may mean care will probably need to be given by a family member. Were you planning on volunteering for this? For your spouse? A loved one?
It won’t just disrupt the life of the person receiving care, it will also disrupt the life of the family member providing care. According to studies, however, very little planning is occurring for long-term care. Wait until you read all the misunderstandings Americans have about coverage by the government for long-term care. Read the Forbes article, Most Americans Are Unprepared For Long-Term Care Costs, New Research Shows.
Let’s plan now. Your best 2nd Half need not be interrupted with an unplanned for and unexpected cash drain on your savings.
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