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Published: Jul 31st, 2015

Can You Afford To Live To 100?

Can You Afford To Live To 100?
Article Updated:October 22nd, 2019

BY: Sharon Epperson/CNBC

Living into your 80s, 90s, or even longer can have a significant impact on your retirement planning and savings.

To make sure your money lasts as long as you do, many financial advisors say it is important to consider how you'll afford to pay for long-term care if you need it.

Longevity is a Major Planning Issue

At least 70 percent of people over 65 will need some form of long-term care services and support during their lives, and the costs can be astounding.

In 2015, the median cost for a semiprivate room at a nursing home was over $80.000, according to Genworth. The annual cost for an assisted living facility was $43,200. And a home health-aide runs about $45,760 a year. In 2019 this cost is much higher. Semi-private skilled nursing home is now $90,155. Base assisted-living facilities now average $48,612 a year. An average week of care at home now runs $52,624 a year.

Long-Term Care Insurance can help you cover these expenses and other services you may need when you're unable to do everyday tasks. Medicareonly pays for long-term care if you required skilled nursing care, but only for a relatively short period of time (a maximum of 100 days).

If you don't qualify for Medicaid, you will have to pay for long-term care services that are not covered by your insurance.

What's the cost of Long-Term Care Insurance coverage?

A healthy married 55-year old couple expect to pay under $250 a month in premiums for a long-term care insurance policy that's worth $150,000 each in potential benefits with 3% compound inflation, according to the American Association for Long-Term Care Insurance. 

Compare multiple policies since costs, discounts and benefit options can vary. Also, before buying a long-term care insurance policy, make sure you understand the terms—and consider how this policy will fit into your lifestyle and budget.