Though the thought of retirement is an exciting part of the aging process, the moment is often overshadowed by the concern of affording the care needed to remain healthy and safe during the latter years. For many, healthcare costs past retirement could run into six figures as care spreads out over a minimum of two decades.
Long-term care refers to the many financial needs an individual may have as an elderly person. In addition to the medical costs you could incur, it is important to factor in LTC costs as you plan for retirement.
More than just nursing home expenses
The costs of caring for an elderly individual go beyond staying in a care facility like a nursing home or assisted living residence. Costs could involve bringing in help for things like bathing, dressing, household chores or assistance with doing errands. As individuals age, the greater the probability of needing some form of long-term care. Women have a higher likelihood of needing assistance, and married couples face the probability of one spouse needing LTC.
Adjusting the need for care
People who have health conditions may face a lower risk of needing long-term care, but this is relative to the fact that these individuals will have a shorter lifespan. For example, smoking is a habit that lowers life expectancy. However, if some level of care is necessary, it is safe to assume that the costs will estimate at around $50,000 a year for several years.
It is important to consider the probability of needing LTC as you age. By understanding how much it could cost, you can better plan your retirement and finances during aging.