COVID Affecting Retirement Planning According to Study
Are you sick of COVID? Most people are, but COVID-19, despite the vaccine, is still getting into our psyche. People are delaying making smart decisions.
We have lived through some very uncertain times due to the COVID-19 virus crisis and its impact not only on health but also on our finances. A recent survey showed that 47% felt helpless, while 44% said they were at an emotional low point in the past year. More Americans are reporting problems with anxiety, depression, and loneliness.
Given the global uncertainty, it would not be surprising if many people put off making important decisions. Planning for your retirement would be one of the most important things to prepare for as you get into middle age. If you are over age 40 you should be in high gear for retirement planning.
Still Saving Money?
Retirement planning would include saving money in retirement accounts like an employer's 401(k) or similar type of qualified savings vehicle. Your job status might be slowing down your savings for retirement, but it should be a priority because, at some point, you will retire.
Planning for future health care costs, including long-term care, should also be a high priority to protect those retirement savings.
However, a recent study conducted by Edward Jones and Age Wave indicates that one in three Americans have decided to delay their retirement due to the virus crisis. The effects of unemployment and lost savings that occurred during the pandemic are the primary reasons people are delaying their retirement.
High Anxiety About Aging and Long-Term Health Care
The study shows that people aged 50 and older are concerned about unexpected expenses that would adversely impact their retirement savings. Sixty-six percent point out long-term care and other health-related expenses as a significant concern.
Plus, fewer people are contributing to retirement accounts, forcing many people to delay their retirement altogether. Read more from Fortune here.
You cannot time market corrections, nor can you predict unexpected events by a pandemic. You also never know when you will encounter changes with your health, body, or mind that will require you to need long-term health care services.
LTC Costs Growing
The costs of long-term health care continue to grow as demand increases and labor costs go up. The LTC NEWS Cost of Care Calculator can show you these costs for both today and in the future. You can narrow down the costs on where you live or expect to live in the future, as care costs vary depending on location.
For example, in Boston, the average cost of in-home health care, based on a 44-hour work schedule, runs about $65,000 a year - today. However, in twenty-five years, that same amount of in-home care will run you about $125,000 a year. Facilities (assisted living, memory care, and nursing homes) will cost more.
If you live in Albuquerque, New Mexico, you will see a lower cost of long-term care. The same amount of in-home that runs $65,000 in Boston will only cost around $52,000 in Albuquerque. These costs will increase as well in the decades ahead.
Affordable LTC Insurance Helps
Including affordable Long-Term Care Insurance in your retirement plan will be an essential part of a successful overall plan. Whatever money you save for your retirement must be protected; otherwise, you will either use your own money to pay for professional care, or your family will be forced to become caregivers. Your loved ones are unprepared and untrained for that burdensome role.
Despite the consequences of an ever-changing economy and the virus crisis, planning for retirement and long-term health care remain critical for your future.
The best time to shop for LTC Insurance is before retirement, ideally in your 40s or 50s. Delaying will only cause more anxiety later in life. Be sure to seek a licensed and qualified Long-Term Care Insurance specialist to match you with the best coverage at the best value.
About the Author
An LTC News author focusing on long-term care and aging.
James Kelly
Contributor since August 21st, 2017
Editor's Note
Planning for future long-term health care has become a vital part of retirement planning. However, in states considering a tax, obtaining coverage may become a priority right away.
Generally, people obtain LTC Insurance in their 50s as part of their retirement planning. Is Long-Term Care Insurance appropriate for you? It depends. If you have enough income and savings to protect, the answer is yes. What if you are younger and have not yet saved much money or maximized your income potential? The answer is less clear.
Seek the assistance of a qualified Long-Term Care Insurance specialist who works with the top companies. They will review your situation and help you determine what action, if any, to take.
One thing is for sure, aging happens, and the consequences on your family and finances can be life changing. Being prepared will reduce family stress and ensure your access to your choice of quality care options while safeguarding assets.
Get Expert Assistance in Planning
Long-term care is a very specialized area, and few insurance agents and financial advisors have the expertise. Seek the help of a specialist who represents the top companies.
Experts recommend seeking the help of a qualified and experienced Long-Term Care Insurance specialist to help you find the right coverage. A specialist will match your age, health, and family history with the right coverage at the right price.
Top specialists will often have over 500 clients with Long-Term Care Insurance, some in the thousands. This experience is necessary as every company has its own underwriting criteria. Plus, premiums can vary over 100% between insurance companies.
A specialist will save you money, and you will have peace of mind knowing they are making the appropriate recommendations - Work With a Specialist | LTC News.
LTC NEWS Offers Many Planning Tools and Resources
Planning for the future is never easy, but long-term health care planning can be very complicated and comes with many emotions. Getting the right tools and resources will make the process much easier.
One of the goals is to reduce the stress and anxiety usually placed on your family at the time of crisis. LTC NEWS can be beneficial in providing you with important information for you to consider.
LTC NEWS has put in place several resources, including:
- The LTC NEWS Cost of Care Calculator will show you the current and future cost of long-term health care services where you live. Plus, each state has vital state-specific information you should know - Cost of Care Calculator - Choose Your State | LTC News
- The Ultimate Long-Term Care Guide is an outstanding read to help you get a good overview of the topic area.
- Compare the major insurance companies that offer Long-Term Care Insurance products here - Top Insurers for Long-Term Care Insurance | LTC News.
- A detailed tax guide that includes available tax incentives can be found by reviewing the Long-Term Care Tax Benefits Guide.
Find all the resources on LTC NEWS - Resources for Long-Term Care Planning | LTC News.
Finding Quality Care for Mom or Dad
If your family is already in crisis and you need to find help for mom or dad, LTC NEWS can help. We have put together several comprehensive guides to help you in your process.
Start by reading our guides -
- Finding Quality In-Home Care | LTC News
- Adult Day Care Centers (ADCCs) | LTC News
- Assisted Living and Memory Care Facilities | LTC News
- Finding a Quality Nursing Home | LTC News
If your loved one is lucky enough to own a Long-Term Care Insurance policy, be sure they use it. Sometimes families wait, thinking they can save the benefits for a rainy day. Waiting on using available Long-Term Care Insurance benefits is not a wise idea.
Get Help in Filing a Long-Term Care Insurance Claim
Many insurance companies have issued Long-Term Care Insurance policies over the years. Filing a claim can sometimes be complicated unless you know what to do or get expert help and assistance.
Don't allow the claim process to stop you from using the benefits available in an LTC policy. Quality care obtained early will help provide a better quality of life and reduce the risk of a deep decline and facility care.
If you need help in starting the process of a Long-Term Care Insurance claim, LTC NEWS can help. LTC NEWS provides free assistance with no obligation to help you, or a loved one complete the claims process with a Long-Term Care Insurance policy. We have teamed up with Amada Senior Care, who will do all the work - free with no obligation.
Get help finding quality caregivers or long-term care facilities and get recommendations for a proper care plan, whether a person has a policy. - Filing a Long-Term Care Insurance Claim | LTC News.
Benefits of Reverse Mortgages
Today's reverse mortgages for those aged 62 and older could be an ideal resource to fund a Long-Term Care Insurance policy OR even provide money to pay for care if you, or a loved one, already needs help and assistance. You might be eligible at younger ages as well.
Some people have much of their savings invested in their homes. With today's reverse mortgages, you can find ways to fund care solutions, care itself, and even help with cash flow during your retirement.
Learn more by asking questions to an expert. LTC NEWS columnist and host of the TV Show "62 Who Knew" will answer your questions regarding caregiving, aging, health, retirement planning, long-term care, and reverse mortgages.
- Just "Ask Mike." - Reverse Mortgages | LTC News.
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You can write a story or ongoing column for LTC NEWS. You can write about many topics, including aging, caregiving, health, lifestyle, retirement planning, and long-term care, to name a few.
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Email your story idea or article: newsroom@ltcnews.com - LTC News Contributors | LTC News
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Learn more about how LTC NEWS can help you market your business, drive traffic, and improve SEO - Advertise With Us | LTC News.
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