Safeguard Your Retirement Savings
If you are at least age 40, you should be saving for your future retirement. By putting money in your 401(k), IRA, or 403(b), you are planning to take the first step. Retirement planning includes several other things that deserve your attention. These include wills, POAs, and Long-Term Care Insurance.
Think retirement is far away? It will happen soon than you think, and getting ready for retirement is something you should be doing throughout your working years.
When respondents were asked when they plan to retire in a Gallup survey, most people said between ages 65 and 67. However, the average age that people actually retire is 61. Are you prepared for retirement and the consequences that come with aging?
If you are at least 40, you should already have saved money for your future retirement. By putting money in your 401(k), IRA, or 403(b), you have started a plan for a successful future retirement. You should also plan to protect that money from the financial costs and burdens of aging. For many people, affordable Long-Term Care Insurance will safeguard their hard-earned assets and ease the burden extended care places on family.
Insurance for your 401(k)
Long-Term Care Insurance is insurance for your 401(k) and other assets. Where will the money come from to pay for your future long-term health care? You should know by now that the responsibility is yours unless you have little or no income and assets, in which case Medicaid can be your long-term health care plan.
Health insurance, Medicare, and supplements only pay a limited amount of skilled services. These insurance options do not cover the costs of custodial services, which help with everyday activities-of-daily living. However, most people require custodial services as they age.
This is a Big Issue, Especially for Generation X and Late Boomers
Long-term health care will impact you, your family, assets, lifestyle, and legacy. Inflation and increased demand for long-term health care services are raising the costs of care services throughout the country.
If you need long-term health care today, could you take on an additional bill for anywhere from $4000 a month to more than $10,000, depending on your needs and where you are receiving your care? Probably this would be financially difficult, if not almost impossible, even if you have done well over your working years.
Now, if you are age 50, for example, think about what your long-term health care will cost in 25 years when you are age 75. The cost of care depends on many variables, including where you live.
For someone in Des Moines, Iowa, for example, one year of in-home care, based on a 44-hour week, will average over $4800 a month in 2022. But in 2047, that cost is expected to average over $9400 a month (based on higher labor costs). Assisted living, memory care, and nursing home care will be even more expensive.
Now, compare Des Moines to Sacramento, California, for example. In Sacramento, the same amount of in-home care services that average about $4800 a month in Des Moines runs over $5400 a month. Assisted living and nursing home costs are even higher in California compared to Iowa. These numbers come from the LTC NEWS Cost of Care Calculator.
If you can't afford professional care and don't want to go into a Medicaid long-term care facility, your family will become your caregiver. Do you want to be dependent on them and place that burden on them and their families?
The duties of a family caregiver typically fall on a daughter or daughter-in-law; however, more men and even young people become caregivers out of necessity.
What to Get Done Now
Be sure to take these proactive actions to help ensure a successful future retirement:
Make contributions to your 401(k) or another retirement account
If your employer does not offer a 401(k) set-up and contribute money to an IRA
Put in place paperwork like your last will and testament, living will, and powers of attorney for finances and health care
Consider which one of your adult children would hold the power of attorney. Have you discussed your wishes?
If you have savings to protect consider adding a Long-Term Care Insurance policy to your plan
LTC Insurance - Part of the Plan
Long-Term Care Insurance provides guaranteed tax-free benefits to pay for your choice of quality care options, including care in your home. You don't have to be concerned about the markets or the economy; your benefits are guaranteed.
Since you must health qualify to get coverage in place, the ideal time to obtain coverage is before retirement. Most people purchase coverage in their 50s to save money and take advantage of better health.
You probably want to enjoy a worry-free retirement. That takes planning, and that planning should be already in progress. If not, better get going now.
About the Author
An LTC News author focusing on long-term care and aging.
James Kelly
Contributor since August 21st, 2017
Editor's Note
Long-term health care is a cash flow problem that can adversely change your income, assets, lifestyle, and legacy. Quality care is a concern, and quality care is expensive - this is why Long-Term Care Insurance is a vital part of retirement planning.
Don't wait too long. Premiums are based, in part, on your age when you get your policy and your health and family history. Most people obtain their coverage in their 50s. Seek the help of a qualified Long-Term Care Insurance specialist who works with the top insurance companies to find the right coverage.
Premiums vary over 100%, and each insurance company has its own underwriting criteria.
Seek Professional Help Planning for Long-Term Care
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.
Long-term care is a very specialized area, and few insurance agents and financial advisors have the expertise. Find a specialist who represents the top companies as premiums can vary over 100% between insurance companies. Leading specialists will often have over 500 clients with Long-Term Care Insurance.
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.
Planning Tools and Resources Available on LTC NEWS
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.
You might have questions and LTC NEWS provides the answers for many of the most asked questions here - Frequently Asked Questions | LTC News. Find all the resources available on LTC NEWS - Resources for Long-Term Care Planning | LTC News.
Does Mom or Dad Need Help Now?
If your family is already in crisis and you need to find help and the right care services 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 four guides -
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 Assistance 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.
Advantages 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. Mike Banner, 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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LTC NEWS is open to contributors to share their stories with the world.
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.
Be sure to write for our core target audience of adults aged 40 and older. Our audience is worldwide; however, our primary target is the United States, Canada, the United Kingdom, Australia, and other English-speaking nations.
Improve your website or blog's SEO and gain exposure and traffic at the same time by being a contributor to LTC NEWS.
You can even promote yourself, your business, and your website or blog. However, it must have editorial content exclusive to LTC NEWS and not just an advertisement. It can include links to other sites, and you can share the article link once published on your website or social media.
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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Let's work together and help consumers who search for us on the web - Site Request | LTC News.
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