Couples who have been together for decades may feel like they already know retirement and long term care planning essentials. After all, it seems like a straightforward task, right? However, planning for these two aspects are far from being simple. It is an ongoing process that requires teamwork and even a little help from others.
To help couples plan for their future effectively, ALTCP shares key strategies to handle preparing for retirement and long term care:
Long Term Care Planning Essentials
As we have discussed in our post about handling the costs of long term care, baby boomers finding the right type of coverage matters. Perhaps, the two of the biggest advantages are the opportunity to safeguard your finances effectively and the means to keep your loved ones protected from the expensive costs.
| Average Monthly Rates of Long Term Care Facilities | |
| Long Term Care Facility | Monthly Rates |
| Homemaker Services | $3,813 |
| Home Health Aide | $3,861 |
| Adult Day Health Care | $1,473 |
| Assisted Living Facility | $3,628 |
| Nursing Home Semi-Private Room | $6,844 |
| Nursing Home Private Room | $7,698 |
Read: 10 Retirement and Long-Term Care Planning Tips to Beat Senior Blues
Research and Talk
Like most aspects, communication is the key to successful long term care planning. Learn about the possible options and discuss your goals with your spouse, but encourage an open discussion. It is vital to weigh each other’s needs, preferences, and ideas, and then to find the middle ground.
Download our free ebook 11 Experts Share Money Conversations Couples Should Have Before Retirement to secure your future.
Consider Shared Care
Long term care insurance policies provide a feature that allows spouses a cost-effective way to access more coverage: Shared Care. The policy details often vary with each company, but the general concept is that couples combine benefits which they both can access anytime. For example, if a couple has 5-year individual but identical policies, each person can potentially have 10 years of coverage. Instead, of purchasing costlier individual plans with longer years of coverage, this helps couples save more money in the long run.
Download our free ebook LTC Insurance: Definition, Costs, and Policy Details to learn more about how the policy works.
If budget is tight, plan who purchases the policy
Understandably, many may find two individual policies too costly to handle. This is why strategically planning who gets the policy works best. Looking at statistics, potential care needs, age difference, and other vital factors, women are the ones who benefit from policies the most. Among most couples, they are typically the ones who earn less, live longer, and receive more care. On top of that, women usually have to face their long term care needs alone and with limited resources.
However, couples would do well to consult with an insurance specialist first before deciding. Please feel free to reach out to ALTCP for any inquiries and consultations.
Request free long-term care insurance quote from top companies to compare plans and prices.
Retirement
Studies show that 35 million baby boomers still have no retirement savings today. With 40 million boomers past the age of 65, the urgency to have an established plan is stronger than ever.
Baby Boomers are in Retirement Trouble
These alarming statistics from a survey conducted by IRI or Insured Retirement Institute show that Baby Boomers are not ready for retirement.
- Only 24% of Baby Boomers are confident they will have enough savings to last throughout retirement, down from 36% in 2012.
- Of the Baby Boomers who lack confidence, 68% said they would have saved more, and 67% said they would have started earlier, when asked what they would have done differently.
- Just 39% of Baby Boomers have tried to figure out their retirement savings need.
- Only 55% of Baby Boomers have any money saved for retirement. In fairness, however, one in four Baby Boomers expects significant income from an employer-provided pension.
- 59% of Baby Boomers cite Social Security as a major source of their retirement income.
- 65% of Baby Boomers are worried about future changes to Social Security.
- Only 43% of Baby Boomers are satisfied with how their lives are going from an economic perspective.
- 26% of Baby Boomers don’t plan to retire until age 70 or later.
- Only 22% of Baby Boomers believe they are doing a good job of preparing financially for retirement.
- Only 27% of Baby Boomers believe they will have enough money for health care expenses.
Communicate expectations and goals
It is so easy to assume that your partner has the same financial and retirement goals as you do. However, couples find that often this is not the case. Similar to planning for long term care, couples ought to continue communicating their goals and expectations.
Continue saving
The assumption is that people spend less during retirement. However, studies show that households spend more, especially during the first two years. This makes getting into the habit of saving and budgeting money is important way before retirement.
Don’t retire at the same time
Retiring at the same time is an appealing thought for many couples. However, retiring at different times allows an easier transition process for both individuals. It also lessens the financial blow.
It is also important to plan beyond marriage. After all, divorce and different life spans often leave one spouse to tackle aging issues alone. This ought to be an important consideration in planning for the future because it presents unique challenges and issues that could impact the quality of life.
For couples who wish to begin long-term care planning, answer our long term care assessment tool to find out how prepared you are for your future. We’d be happy to provide further assistance that you need in ensuring security, stability, and independence during old age.
