Thanksgiving is just ahead on the calendar – a distinct reminder of the love, friendship, and community that makes our lives so special. We can also be thankful for our health and wellbeing; we all hope to sustain our good health well into retirement. Even so, it is not unusual to think about what would happen in case of a nursing home stay or some other type of long-term care scenario. How would your retirement savings be affected?
As November is Long-Term Care Awareness Month, I feel this might be a good moment to share a few facts about this:
*The Department of Health and Human Services projects that at least 70% of Americans older than 65 will need long-term care. More than 40% will require nursing home stays.
*If you end up needing nursing home care, you may risk draining your retirement assets. The average monthly cost for a semi-private room in a nursing home is now $7,441, according to Genworth Financial’s respected Cost of Care Survey.
*Medicare will not take care of your long-term care needs. Medicare only pays for the cost of a skilled nursing facility for 20 days; it then requires a significant co-pay from you for the next 80 days. After 100 days, Medicare’s long-term care coverage runs out.
*Medicaid will pay for long-term care, but only once your income and assets fall below state and federal thresholds.
*Long-term care insurance isn’t just limited to nursing home coverage. Long-term care is defined as any assistance provided to someone who has a condition or illness limiting the ability to perform normal daily activities. This can range from help with eating or dressing to forms of rehabilitative and therapeutic care.
1 – entrepreneur.com/article/320518 [9/25/18]
2 – genworth.com/aging-and-you/finances/cost-of-care.html [10/9/18]
3 – cbsnews.com/news/long-term-care-misconceptions-retirement/ [7/7/17]
4 – agingcare.com/articles/definition-of-long-term-care-insurance-143436.htm [10/24/18]