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The Biggest Risk To Retirement Income

April 16, 2020

For current retirees and those nearing retirement, healthcare costs are expected to pose the single greatest risk to income in retirement.

When custodial care is factored into the healthcare equation, costs can quickly skyrocket well above average projections. Employer-based health coverage will not pay for daily, extended care services. Also, it’s important to keep in mind that Medicare, Medicare supplement plans, and private medical insurance don’t cover long-term in-home maintenance or nursing care. Long-term care planning may be more critical than retiring couples realize.

What is Long-Term Care?

Long-term care refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Long-term care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

To help cover potential long-term care expenses, some people choose to buy long-term care insurance. A LTC policy may be much cheaper than saving and paying for a long-term care emergency out of pocket.

Benefits of Long-Term Care

Long-term care planning may be more critical than retiring couples realize. Many people overlook it when planning for their retirement income and healthcare needs, but one of the major risks retiring couples face is the chance of a serious illness or extended nursing home stay.  Here are some benefits of Long-Term Care insurance:

  • Maintain independence. Help maintain one’s financial independence from family and friends, often eliminating the need to borrow money for long-term care costs.
  • Preserve savings & assets. Helps protect against the high costs of long term care; to preserve their children's inheritance.
  • Provide peace of mind. Make long term care services affordable, such as home health care and custodial care.
  • More care opportunities. More options than just nursing home care, and to pay for nursing home care if it's needed.
  • Preserve standard of living.
  • A smaller policy is often enough. A small policy can also come in handy if your loved ones can provide in-home care as you age.

The Time to Plan Ahead is Now

During this uncertain time, something we know is certain is our ability to maintain our interdependence in later years. If you haven't looked into long term care insurance, or have any questions about the topic, feel free to contact Morgan Marlin at 404-704-2966. 

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