Shining Light on the Truth About Long-Term Care
Updated: Jun 7, 2021
Our global population is aging at a faster rate than ever before, and people are living longer. 10,000 Baby Boomers turn 65 each day. This trend will continue until 2030. Seven out of 10 people will require long-term care in their lifetime. Most are unprepared for the significant cost associated with this type of care.
For the past 10 years in Arizona alone, the cost of a private room in a nursing facility has increased $20k—costing an average of about $100k per year. With the inflation associated with care outpacing any other inflation number, in 10 more years, the cost is projected to be close to $133k annually. This increase is across the board—in-home care, adult day healthcare, assisted living or semi-private rooms. The reality is this, if someone needs care for more than a three-year period, it has definite potential to decimate a retirement portfolio if left unplanned. Ninety percent of married couples ages 65 and older will need some form of long term care, whether for dementia or another chronic illness. About two thirds of Americans believe Medicare will cover the cost of long-term care or aren’t sure whether it will; it won’t.
This topic is a challenge for almost every family. There are some who are fortunate and have considerable resources, but even for those families, it’s a major financial obligation. We want to offer hope and solutions to families across the great state of Arizona who are faced with making decisions about long-term care planning and caregiving. It’s important to plan for your future in the most tax-efficient, cost-effective way possible.
If you would like to know more, please click the button below to set up a complimentary consultation to review your personal financial story.