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Give clients comfort on how to plan for long-term care costs in retirement

Planning ahead for the likelihood of needing long-term care (LTC) can help clients feel confident and more secure as they age. A person at age 65 has a 70% chance of needing some type of long-term care during retirement.³ The total median cost of LTC can easily approach or exceed $300,000.4

Long-term care expenses aren’t included in Medicare or retiree health insurance

There are a number of options for LTC, and each varies in cost. Your clients will need to know how to pay for home health care, assisted living, adult day care, and nursing home care or another type of LTC. The bottom line is that the burden for paying for LTC costs rests almost entirely on individuals and their families. That’s why helping your clients plan in advance for their long-term care needs is so important.

Preparing for long-term care is one of the key health care decisions for retirees. As you help your clients plan and save for retirement, you should take long-term care costs and how much extra income they will need to cover such costs into consideration too.

Paying for long-term care for women

Statistically speaking, women are the more fortunate gender in terms of having longer lives.5 But those extra years can be a struggle for women who are widowed, because the costs accumulate due to the added time span.

In the early stages of chronic health conditions, family members know who will act as caregiver, but don’t know how to pay for home health care. More often than not, women are providing this informal care.6

Informal caregiving can take a physical and financial toll of women, who must manage responsibilities for themselves and their families while also attending to care for a chronically ill loved one.

Female clients are likely to need more money to care for a longer life7

Only 38% of women age 75+ have a spouse contributing to their total income8. Planning for the surviving spouse, usually a woman, helps provide more confidence she has the financial resources for flexibility and choice in care as the surviving spouse will be less likely to have support when long-term care may be needed.

Making the best long-term care choices

While the future of health care legislation in the U.S. may still be uncertain, the need for health care planning is not. Nationwide can help. Our Health Care/LTC Cost Assessment tool helps you provide a personalized estimate of your clients’ expected Medicare premium and out-of-pocket costs to refine their retirement financial plan. It can also help plan for long-term care.

Sources

  • 1

    Many Americans Worry About Cost of Long-Term Care: Poll. U.S. News & World Report. Sept. 30, 2013.

  • 2

    Medicare & You, 2015. National Medicare Handbook, Centers for Medicare & Medicaid Services.

  • 3

    Medicare & You, 2016.” Centers for Medicare & Medicaid Services.

  • 4

    Long-term Care Insurance Statistics,” LTC Tree (August 16, 2016)

  • 5

    National Vital Statistics, Center for Disease Control, August 17, 2017

  • 6

    Institute on Aging, 2016.

  • 7

    American Association of Long-Term Care Insurance (2015).

  • 8

    The 2014 Sourcebook for Long-Term Care Insurance Information – AALTCI. 2014.

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