Planning for long-term care is not on the top of most Boomers’ priority lists. After all, who wants to think about the possibility of their health changing and then needing help with bathing, dressing, and the other things we take for granted?
The simple truth is, though, according to the U.S. Department of Health and Human Services, when you reach 65 you have a 40% chance of going to a nursing home. And once you’re there, there is a 10% chance you’ll stay for at least five years.
The cost… over $70,000 per year. And a $350,000 hit could be devastating to your retirement dream.
As you can see then, long-term care planning is really part of retirement planning.
Long-term care insurance is one way to protect your nest egg from this kind of blow. Policies come with a wide range of benefits, which means you can have one designed just for your needs, and budget.
But suppose you are uninsurable? Does that mean you’re flat out of luck if you need long-term care?
Self insurance is one strategy to consider. That means putting aside enough of your money to pay the cost of long-term care. Before you take this route, however, consider two things – your future income and what you own.
So, how should you calculate your future income?
Should you include Social Security? Considering the state of the federal budget and the talk by the people in Washington about slicing benefits, counting on Social Security might not be wise.