Recent studies conducted by the National Council on Aging and the Leading Age LTSS Center @ UMass Boston found that an astounding 80% of adults over age 60 are unable to afford the costs of non-medical long-term care (LTC). And while you may think that LTC won’t be a concern for you, research indicates that people turning 65 today have a 75% chance of requiring long-term care in the future.
An aging population is now facing custodial care services that continue to rise due to inflation and a shortage of skilled workers. The largest price increase occurred in skilled nursing facilities, where a private room can set you back $10,000 per month. Unfortunately, most of this amount will not be covered by FEHB or Medicare.
While your primary insurance usually covers approved medical needs in a nursing home, most are surprised to learn that FEHB and Medicare will not pay for the custodial care required to carry out activities of daily living (ADLs). ADLs are comprised of basic needs such as eating, bathing, and getting dressed.
If you don’t think you’ll live long enough to need long-term care, you’re not alone. In a survey of people aged 65, only 58% of men and 64% of women believed they would live until 80. Again, the numbers tell a different story. At age 65, a man has a 66% chance of living until 80 while a woman has a 75% chance of hitting that milestone. And when you live to age 69, your chance of making it to 80 further increases.
Healthy habits and maintaining an active lifestyle might be good preventive measures, but not having a plan for long-term care could derail your retirement if you’re unprepared for the cost. Keep in mind, the need for long-term care can hit at any age if a heart attack, stroke, or accident leaves you incapacitated.
To explore a plan for long-term care that fits in with your retirement goals, connect with an FRC® trained advisor.
