Americans Worry About The Need For Long-Term Care, But Fail To Prepare
By Rokeya Sultana, Accessible Home Health Care of Collin County, Collin LIVING WELL Magazine
As retirement savings have taken a serious hit in the last few years, the cost of long-term care services has continued to rise, causing many Americans to doubt their ability to pay for the services they may need in the future. Prudential’s recent study, “Long-Term Care Insurance: A Piece of the Retirement & Estate Planning Puzzle,” finds 71% of those surveyed are concerned about the possibility of needing extended care service. Yet, 63% do not have confidence in their ability to pay for this care.
“There’s no question that as Baby Boomers age and approach retirement, one critical component to their financial plan – sometimes overlooked with dire consequences – is how to protect retirement savings, income, choice, and independence from the impact of a long-term illness or disability,” according to Malcolm Cheung, vice president, Prudential Long-Term Care Insurance.
Dealing with the potential for long-term care needs requires preparation, including proper retirement planning; understanding the costs of both long-term care services and insurance; and the willingness to discuss the available planning options.
The cost of insurance to cover long-term care needs is misunderstood. While the cost of an individual policy varies significantly by age at time of purchase, 60% of those surveyed well overestimated the annual cost, even for the oldest of individuals. The remaining 40% were so unsure they couldn’t venture a guess.
Given that many Americans already feel challenged about saving enough money for retirement, the unexpected costs associated with future extended care needs can add to that concern as the cost of care could erode one’s nest egg. Prudential’s research shows that those who currently have long-term care insurance are twice as likely to be “highly confident” about their ability to pay for future extended care services without depleting their personal assets or retirement savings. This finding points to the peace of mind achieved by incorporating long-term care insurance into a comprehensive retirement plan.
Author Rokeya Sultana is the owner of Accessible Home Health Care of Collin County. Accessible Home Health Care is a full service home health care provider. We accept most major long-term care insurance, and can provide guidance for the same. If you have any questions or need help, please call us at 972-516-4384. You can also visit our website: www.accessiblecollin.com.