For most of us, retirement is a goal we hope will allow us to enjoy the fruits of previous sacrifices. While preparation increases the likelihood that we can enjoy our golden years, there are many uncertainties that determine whether retirement is an opportunity or a burden.
Each of us would also like to leave a legacy to those who follow. We hope what remains at our passing will make others’ lives better. However, those same uncertainties can also impact what is available for us to leave behind.
An average of 8,000 baby boomers a day turn age 65, a rate which will continue for the next several years! According to government statistics, 70% of these seniors will need some form of long-term care.
This reality highlights one of the most important uncertainties seniors must face: The costs and consequences of long-term care. Long-term care needs can dramatically impact both the quality of our retirement years and the assets we can pass on at death.
With potential monthly costs of $7,000 or more, the costs of long-term care can be devastating on retirement and estate plans. How does a senior couple absorb the cost of assisted living or skilled nursing care for one spouse and provide for the other spouse to remain at home? The typical health care insurance plan will not pay these costs, nor will Medicare or typical health insurance policies.
No longer can your estate plan address only what happens upon your passing. It must work in lockstep with your retirement plan and account for end-of-life issues, including potential long-term care needs. Fortunately, creating a cohesive plan will not likely require a major change in your financial/insurance strategy. However, failure to account for risks such as long-term care can be devastating.
The first step is to learn more about long-term care issues and options available to you. Come to a free presentation to find out what you can do now to prepare for potential long-term care needs.