Long-Term Care Needs To Be A Part Of Your Retirement Plan
More than half of Americans say they have a robust retirement plan in place to live comfortably on. Nevertheless, in their retirement plan, most Americans do not account for long-term health insurance. As with retirement, the goal of long-term care is to help you maintain your lifestyle as you age. This type of care is different from regular routine check-ups that you may need. It accounts for physical and mental disabilities that can occur as senior citizens. Long-term care planning should be a priority right next to retirement planning.
It may be difficult to imagine a life that you cannot live independently and take care of yourself, but for many Americans it is a reality. According to the United States Health and Human Services Department, 70 percent of Americans age 65 and up will need some kind of long-term care in their lives, but many people blindly assume they won’t. While most people are afraid of sitting down to plan for a time they will need long-term care, it is vital to your overall retirement plan. If you do not include a long-term care plan, your retirement savings can be drained, leaving you to pay out of pocket alone.
According to this 2019 Genworth Cost of Care Survey, the cost of long-term care is steadily increasing every year. Americans ‘ life expectancy is also on the rise, increasing the possibility of long-term care, the longer we live. With costs trending upwards each year, having to unexpectedly pay for long-term care can easily destroy even the wealthiest individuals. What’s more, the long-term care insurance industry has been historically complex and volatile for legislators and industry experts to sustain, causing an uptick in long-term care insurance premiums every year.
It can be expensive and complicated to understand how to prepare for your “golden years.” There are many variables to account for and you just do not know what is going to happen. Certainly, no one wants to think of a scenario that they are not fully autonomous over their bodies and their lives, but realistically life happens. Without proper planning, you leave yourself and your loved ones at risk to be in a financial crisis.
Being proactive with your planning can significantly reduce the natural stress that comes with taking care of yourself as a senior. To learn more about including long-term care into your retirement budget schedule a consultation with a financial advisor at SJK Wealth Management. We can help you to understand all of your options and give you a greater perspective of your financial status. We can review your portfolio and create a personalized comprehensive retirement plan that includes the possibility of needing living assistance later in life.
There are a variety of options to choose from for long-term care including traditional long term insurance, short-term insurance, hybrid insurance and more. There are also various options for accommodations later on in life such at home care, living in an assisted care facility, part time care and others. Give yourself one less thing to worry about by taking steps now to protect your hard-earned assets and your independence in the future. To get started, contact us and request a consultation. It’s free and there’s no obligation.