The nation’s teachers are paying more attention to their future retirements and concerns about aging and long-term care. According to the National Center for Education Statistics, the average age of public school teachers is 42.4. Nearly 19% of all active teachers are age 55+.
Even though many of these teachers have defined pensions, the impact of longevity and the cost of long-term care services can dramatically impact a couple’s lifestyle and drain their savings.
Future Extended Care Will Be Both a Cash Flow Issue and Family Issue
Retirement experts say long-term care is both a cash flow issue and a family issue. Failing to consider future long-term health care will have consequences.
A nationally recognized specialist in long term health care told a group of educators in Oklahoma that planning for the financial costs and burdens of aging is essential to their retirement planning.
“Teacher’s defined pensions are under microscopes in Oklahoma and across the country. While I won’t debate the merits of defined pensions as opposed to a defined contribution program (like a 401k), the bottom line will be continued pressure by states and school districts throughout the country on how best to provide retirement for our teachers.”Matt McCann, a specialist in Long Term Health Care planning.
Longevity Means Higher Risk of Extended Care
McCann said that no matter which method a teacher may have, Long Term Health Care is still the biggest involuntary risk teacher’s face in enjoying their future retirements.
“The US Department of Health and Human Services says that if you reach the age of 65, you will have a 70% chance of needing some form of long-term care service. A majority of care is custodial in nature. This means help with activities of daily living or supervision due to a memory issue of some type. This is not paid for by any health insurance plan or by Medicare or Medicare Supplements. Since the cost of care is high, teachers, just like the rest of us, need to plan.”Matt McCann
Preparing Family and Finances is Essential to Retirement Planning
McCann noted that Long-Term Care Insurance is an affordable way to plan for the physical, emotional and financial burdens long-term health care has on loved ones.
“One in three seniors will have some type of cognitive issue according to the Alzheimer’s Association. People require Long Term Health Care because of accidents, illnesses, and the impact of aging. Dementia and memory issues are just one of many reasons people require care. The advances in medical science make us more likely to need care at some point, and this cost is high. With questions on how teachers' retirements will be funded in the future, planning on Long Term Health Care is an easy and affordable way for teachers to help themselves and their families now.“Matt McCann
McCann has over 20 years of experience in long-term health care planning and is recognized as one of the top specialists in the nation. He assists individuals to determine if Long-Term Care Insurance is suitable if the person's health qualifies for coverage and then helps them shop for the best coverage at the best value.
“Long-Term Care Insurance is very affordable. Most of my clients are in their 40’s and 50’s and see this as an important step in their retirement planning. But remember, a long-term health care event can occur at any age. While we hope it happens when we are much older, it is not always the case. These medical advances allow us to survive health events and accidents more now than ever before. However, many times it means we need help with our daily living activities.”Matt McCann
This article originally appeared on News-Light.com: Teachers Told Long Term Health Care Planning is Essential for Retirement Planning - http://www.news-light.com/teachers-told-long-term-health-care-planning-is-essential-for-retirement-planning_1028361.html
About the Author
An LTC News author focusing on long-term care and aging.
Contributor since August 21st, 2017
Planning for the physical, emotional, and financial burdens of long-term care is an integral part of retirement planning. You can protect your retirement accounts (401(k), IRA, SEP, 403(b)) and reduce the stress and burden otherwise placed on those you love.
The key is to plan before you retire when premiums are very affordable. Start your research by finding the current and future cost of long-term care services where you live by using the LTC NEWS cost of care calculator - just click here.
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