Will Your Money Last Through Retirement?
When Social Security first came out in 1935, the average person lived to be 65 years old. According to current life expectancy rates, the average man turning 65 today can expect to enjoy another 19 years of living, while the average woman is likely to get additional 22 years. While this is most certainly good news, the real brow-raiser comes from looking at the realities of what those years might look like. Making sure your money lasts as long as you do begins with getting the facts so you can be better prepared for what lies ahead.
What Is Long Term Care?
Long term care refers to a range of services, many of which have nothing to do with getting sick and everything to do with living longer. The U.S. Department of Health and Human Services reports that most people use long term care in order to get help with basic personal tasks such as bathing or getting up from a chair. What are the chances that you might need long term care? And how long will you need care for? The statistics might surprise you.*
- Almost 70 percent of all people turning 65 will need some kind of long term care during their lives.
- 20 percent of people who need long term care will require services for 5 or more years.
- The average duration for long term care services is three years.
- Women on average need care longer than men.
- The cost of long term care in the United States depends on where you live and the type of services required, but a semi-private room in a nursing home on average costs $74,820 a year.
- The average cost for a one bedroom unit in an assisted living facility is about $40,000 a year.
- More people receive long term care at home rather than in a facility.
- The average costs for at home health care is $21 an hour for services such as help with bathing and taking medication.
- The average cost for home maker services such as help with meal preparation and household chores is $19 an hour.
- Medicare only pays for a maximum of 100 days in a nursing home and does not pay for non-skilled assistance which is what people need most.
Retirement Planning Is Critical
The security of your retirement doesn’t have to be based on hoping this doesn’t happen. You have options when it comes to funding the cost of long term care, and the sooner you make preparations, the more control you will have over your own independence. To find out what you can do to prepare, visit RichLifeFinancial.com and request a no-obligation, personal financial review!
*Statistics current as of 2014 from the U.S. Department of Health and Human Services <http://longtermcare.gov/the-basics/
Life expectancy rates from the Social Security Administration <http://www.ssa.gov/planners/lifeexpectancy.htm>