ACSIA Partners: Most Americans Cannot Afford Long Term Care

According to ACSIA Partners, a leading long term care
insurance policy company, almost all Americans who are 50 years old struggle to
cover the high cost of long term care.

But don’t fret because according to ACSIA, there are two
ways to overcome this hurdle.

First, you should determine if there is a gap between your
ability to pay and as well as your possible expenses in the future.

A gap definitely exists according to a May 2015 report by GAO
or U.S Government Accountability Office. According to the report, 52% of
households 55 and above have no savings for retirement. Even if you still have some
retirement savings, this may not be enough to cover your future long term care
needs.

So how can you close the gap?

Denise Gott, CEO of ACSIA Partners recommend getting a rough
estimate. You can do this by using the calculator provided by U.S Department of
Health and Human Services: http://longtermcare.gov/savings-calculator/.

To give you an idea, here’s a sample calculation of a
52-year-old woman who plans to retire in Florida and can save $300 that earns
4% interest monthly. Her long term care savings gap would be $652, 184 based on
the projected care cost in Florida which is $839,263, for life remaining after
she turns 65, minus $187,079 in accumulated savings, which is determined by
government assumptions and data.

If she is married, then her husband will have the same long
term care gap too.