Long-Term Care in Retirement
September 8, 2022
As we continue to go over preparing for the potential life changes retirement can bring, it’s time to discuss a very crucial factor that many would rather avoid: long-term care (LTC).
While we hope you never need long-term care, someone turning age 65 today has almost a 70% chance of needing it1. With the cost of an assisted living facility averaging at $4,5002, not planning ahead could have a vast impact on your financial future.
The good news is you can factor in LTC into your retirement strategy and, should you not need it, that money can be used however you choose. Here are some of the tools used to help pay for long-term care:
Medicare/Medicaid
- Medicare only pays for long-term care if you require skilled services or rehabilitative care. Medicaid does pay for the largest share of long-term care services, but to qualify, your income must be below a certain level and you must meet minimum state eligibility requirements.3
LTC Insurance
- “People with certain conditions may not qualify for long-term care insurance. Since standards vary between different insurance companies, if one company denies you, it is possible that another company will accept you.”3
Alternate Options
- “If you do not qualify for long-term care insurance because of age or poor health or if you are already receiving long-term care, you can still purchase an annuity. The deferred long-term care annuity creates two funds: one for long-term care expenses and another separate fund that you can use however you desire.”3
Our team is here to help you find the right strategy to prepare for potential LTC needs. Please contact us to schedule your complimentary consultation. We look forward to helping you!