It’s hard to predict how longyou’llneed long-term carein the future,but based on the statistics,it's likely going to be longer than you think.
The time to plan forlong term care expenses and otherhealth care costs in retirementis before youactually needthem. Let’stake a lookat what might go into the decision and the optionsavailableto you.
What are the chances I will need long-term care?
Of course, there are multiplepersonalhealth factorsto considerwhen trying to answer this question. But generally, abouthalf of Americanswho live to age 65develop a need forlong-term-care services and supportin their lifetime.
Anotheroften-cited estimatefromtheNational Center for Assisted Livingsays that after a median stay of 22 months in assisted living, 60percentof residents will transition to a skilled nursing center.Once in a nursing home, about half of residents stay for at least a year, while21 percent live there for almost five years, according totheHealth in Aging Foundation.
What is meant by long-term care?
Now that you know the statistics on the prevalence of long-term care, you might be wondering what that encompasses.
Generally, long term carerefers to a broad category of services that help people perform certainactivities of daily livingwhen they are unable to do so themselves, whether due tocognitiveor physical impairments.Sometimes, helpwith these self-care activities and daily tasks,from bathing and dressing to running errands and paying bills,are provided byfriends and family members,or may come froma home health aide or health care workerthat you pay to come to your home.
Eventuallyyou might opt to move to an assisted living facility, communities designed toprovide a broad range of assistancethat caninclude housekeeping and maintenance, dining services, laundry, transportation andotherpersonal care services. Many senior living communitiesalso haveadditional amenities, such as healthandwellness programs and outlets to feed creative, cultural, educational, social and religious pursuits.
An assisted living service will also frequently work with providers to offer a variety of services that may include:
Dental
Mental health
Pharmacy
Podiatry
Therapy, such as physical, occupational or speech
In addition,they often help residents manage chronic conditions, such as diabetes and cardiovascular needs, withsome havingdesignated dementia units or floors.
If youneed more care than an assisted living facility can provide,the next option would likely bea nursing home, which provides more traditional medical services administered by medical professionals.Almost half of those living in nursing homes are85 years or older, and 72percentare women.
RELATED CONTENT: How much do I need for retirement? Our retirement planning guide can help you better understand the road to retirement — and how to craft a financial plan that’s built around your unique goals.
How much does long-term care cost?
The cost of coveringlong termcare can vary greatly depending onthelevel of care you need and for how long.
According to Northwestern Mutual’s 2020 Cost of Care study, a home health aide or certified health care worker averages $26 an hour— at this rate,full-timedailyhelp could add up to more than $75,000 per year.Meanwhile, theaverage price for a one-bedroom apartment in an assisted living facility is $4,800a month(or more than $57,000 per year) and private rooms in a nursing homeaverage $113,000 a year.(This calculatorcan help you estimate costs in your area of the country.)
Howyou ultimatelyspend your later yearswill be an unknown, butit’s safeto assume that you’ll needlong-term-careservicesat some point in your life, whether that’s at home or in a facility. That’s why it’s paramount to create a financial plan thatincludeslong-term-care planningso that you and your family won’t have to beworryabout affording the best option for your situation.Afinancialadvisorcan helpyou incorporate the cost of long-term care into your plan.
