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Why You Should Plan for Long-Term Care

Long-term care (LTC) is defined as a variety of services designed to meet a person’s health or personal care needs during a short or long period of time.1 LTC is necessary for individuals who have difficulty or can no longer perform basic activities on their own. These can include bathing, dressing, eating, etc.2 Here are just a few reasons why LTC is a vital component of a solid retirement plan.

Financial Cost

LTC can be an extremely costly expense in retirement, with many spending multiple thousands of dollars each year. The cost depends on factors such as the level of care needed, how many years you’ll need it, and where you receive it. You may choose to receive at-home care, which can cost more than $50,000 a year, or you can move to an assisted living facility, where the median cost for a private room is more than $100,000 a year.3 The financial burden can also affect your loved ones, as many retirees have to rely on family members for financial assistance. LTC expenses don’t have to put you and your family in extreme debt. Consider making it a part of your retirement plan now so that you can help protect yourself and your loved ones later.

Quality of Life

Your health is so important and requires careful consideration. Having a plan in place for LTC can help ensure you receive the best level of care possible. Planning could mean the difference between receiving professional care at home, if you so desire, or being forced to stay in a facility that may not adequately meet your needs. You don’t want to spend your retirement years worrying about how to pay for LTC or sacrificing your care needs. Protect your peace of mind and quality of life by creating a plan now.

Planning for the Unknown

Most elderly individuals will need care on some level at some point in their life. While we all hope we never have a need for LTC, the risk of not being prepared is too great. The good news is that you have options when it comes to LTC. You can choose to receive care at home or at a facility. You can decide whether you want to have a private room or a shared one. Having a plan can help ensure that your wishes and needs are met.  You should also discuss your desires and plans for LTC with your loved ones so you are all on the same page. If you wait until the need arises, it may be too late.

When it comes to LTC, proper planning can give you more control. You should understand the potential financial costs, determine the quality of care you desire, and create a plan with the help of a financial professional. ARI has courses that cover LTC and its role in your retirement. Education is the first step to putting your plan into action. It’s your future. Don’t leave it up to chance.