Long-term care planning is an important aspect of retirement planning that is often overlooked. As people are living longer and healthcare costs are increasing, it is crucial to consider the cost of long-term care in retirement planning.
As we age, one of the major healthcare costs we face is Long-Term Care (LTC). LTC is the extra help needed when we can’t complete basic daily tasks and take care of ourselves independently. Medicare covers some health care costs, but LTC is not one of them. Insurance for LTC is suggested to prevent running out of money in retirement due to its high costs.
Retirement strategizing usually includes addressing healthcare to ensure that quality of life is maintained throughout your retirement. There are certainly risks to your quality of life due to health reasons, but those can often be tied to financial concerns as well. Some people may be at risk for early retirement due to declining cognitive, psychomotor, physical, and sensory abilities required for their jobs, according to a new report. The report also suggests that working longer is not a reliable financial plan since many retirees leave their work early due to health problems.
Many predict that healthcare costs will continue to increase, making LTC planning more important than ever. Workers with physically demanding jobs are most susceptible to early retirement, but every occupation is vulnerable to an age-related decline in at least one ability. The report recommends assessing your susceptibility to early retirement by talking to older workers in your field to get a sense of what their retirement timeline is and what financial costs and goals should entail.
There are different options for LTC services, and costs can vary widely depending on the type of care and location. That’s why taking your quality of life in retirement seriously could mean purchasing long-term care insurance. Starting early and considering factors such as age, health, financial stability, wealth, and care preferences can help you choose the right type of LTC insurance coverage and care style before it becomes a surprise financial burden. Regardless, planning for long-term care can make a significant difference in the quality of life in your later years.
Financial professionals can help clients understand the importance of long-term care planning and develop individualized plans based on your situation. If you are looking for a guide to retirement and long-term care, reach out to (603) 261-3736 today.
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Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.