What is one thing that many older individuals strive to have as they get older?
Independence.
The type of independence in which we can still freely live our lives without fully relying on other people to decide for us. We will all grow old, and getting through the previously mundane tasks will not be as easy anymore. However, independence is possible; we simply need to plan for it.
Often, when we think of the golden years, we see years of relaxing and playing golf on weekends. Our children have grown and have had families of their own. Our time is solely ours, and we can do whatever we have always wanted. We can finally pursue that business we have been eyeing. We can take that class we did not have the time for before. We can even pursue the passions that took the back burner. The senior years ought to be the glory years, but we have to plan for it carefully.
A Month of Planning
October brings a lot of festivities to mind. At the end of the month, we have Halloween parties and trick-or-treaters to look forward to. However, the month of October also signifies two other observances that not many people are not aware of: Long Term Care Planning Month and the National Financial Planning Month.
Understandably, these two topics might not be your favorite subjects to think about. However, you cannot deny that they are vital in all our lives. The costs of all the essentials are continuously rising, and none of us are getting any younger. With those to consider, long term care and financial planning should be at the forefront of everyone’s minds. So take this month as the best opportunity to get a head start in planning.
Jumpstart your long term care planning by answering our short long term care quiz.
The Price Tag of Living in America
Nowadays, nothing is cheap. We have 60-year-olds still working to pay off their student loans. So many millennials are going back to live with their parents to cut costs.
Even the cost of care in the country is reaching new heights. Recently, Genworth published a report detailing the price of care in each state. For a person to sustain living in a nursing home for a year, he or she must shell out a median cost of $82,125 for a semi-private room and $92,378 for a private room. Assisted living facilities and adult day health care are priced at $43,539 and $17,680 on average. While homemaker services and home health aide are at $45,760 and $46,332 a year. The price of hiring live-in caregivers ranges from $700 to $3,000 a week.
Now, imagine dealing with those expenses using the savings that you have at the moment. Yes, there are a select few who can handle spending these amounts with just their nest egg. They can simply dip into their savings when the need arises, and not worry about other costs. Their savings can take the blow, but there are people who can even fathom how to pay for these. According to the US Government Accountability Office, the average savings of individuals age 55-64 is about $104,000. For the individuals age 65-74 (the age range with higher chances of needing care), the average retirement savings is at $148,000. A year at a nursing home will surely do a number on those savings.
Check out our interactive map on the current cost of long term care in the United States.
Information on Long Term Care Insurance and Financial Planning
No financial plan is complete without a good long term care plan. And no long term care plan is complete without long term care insurance—or at least knowledge of it.
We have all heard it before in one form or another: knowledge is key to successful decision-making. And when it is our future stability and well-being we are talking about, we cannot take decision-making lightly.
What makes things easier now is the accessibility of resources. Everything is now within reach that we no longer have any excuse not to know. The abundance of long term care insurance information online provides the perfect tools in making an intelligent decision. Plenty of articles and works also give tips on how to create a stable financial plan. We just need to learn how to utilize the information we are handed with.
Read Next: 10 Reasons Why You Should Get Long Term Care Insurance (Infographic)
But Are Insurance Policies Reliable?
Various accounts online have expressed concern about the rate hikes and other concerns. Understandably, we see where these fears are coming from. Once we reach the time when need the long term care, we are in a somewhat vulnerable state. No one wants to be spending so much money on premiums, only to discover that the policies will not hold up.
However, data shows that long term care insurance beneficiaries are satisfied with the benefits they are getting. In a recent report, 94% of claimants see their benefits as sufficient for their care. These are the individuals who availed of policies from major long term care insurance companies.
This is why it is so important to approach the companies and agents that are trustworthy. Learn about their experiences dealing with long term care insurance policies. Study the stability of the company you want to purchase an insurance policy from. Consult with a financial planner as well. These are the people who know how the industry works, and they will guide you on what to do.
Share Your Thoughts
Everyone has different needs, goals, and expectations when in the golden years, and we plan according to these factors. However, learning about the way other individuals plan for their futures can be a big help to others.
How are you setting up your finances and acquiring coverage for possible long term care needs? Share with us your tips, suggestions, and concerns. We would be happy to discuss them with you. We understand how difficult planning can be, and we would like to be there every step of the way. Leave us a message in the comment box below!