As we all go through life, there are many concerns on our minds. One of the biggest worry on the minds of many who are either retired or who are approaching retirement is that of outliving their income before they run out of time.
Yet today, there is also another fear that many seniors have – one that may not be quite as openly discussed, but nevertheless, it still ranks among the top on the list. This is the fear of becoming a burden on their children should they become too old or too frail to be able to care for themselves.
The Consequences of “Unassisted Living”
According to a recent report by UBS Investor Watch titled “Unassisted Living,” even though many say that they fear being a burden on their children during old age, they prefer not to seek their assistance. In fact, based on the report, only 39% of even wealthy investors have talked with their children regarding who will take care of them – preferring to remain in their own homes and to rely either on a spouse or on a home health aide should assistance be needed.1
Unfortunately, though, while many individuals have high hopes of remaining in their own homes as they age, very few have actually developed a plan for doing so – and even fewer have saved for it.2
One reason for this could be that many individuals don’t really know just how expensive long-term care can be. Others may just simply not want their loved ones to worry about them as they age.
The Cost Impact of a Long-Term Care Need
A big part of the long term care planning process begins with knowing what you could be up against in terms of the true cost. This includes the price tag financially, as well as physically and emotionally.
Based on Genworth’s 2014 Cost of Care Survey, the daily price tag for a private room in a skilled nursing home facility in 2014 was $240 – which equates to more than $87,000 annually. And, while home health care workers average roughly $20 per hour3, when you add up the cost of someone coming in for 20 or more hours per week – sometimes more – this too can add up to a substantial expense.
But the costs can add up in more ways than just dollar signs. Often, in order to save from a financial perspective, family members or other loved ones will step in and provide informal care to someone who needs it. This, however, can create a strain – especially as the individual’s needs become more demanding.
Overcoming the Cost By Creating a Plan
One of the best ways to overcome the cost of long-term care is to have a plan in that is already place. This can help from a financial perspective – and it can also help in alleviating the worry about becoming a burden to one’s children or other loved ones. Knowing ahead of time how care will be taken care of can do wonders for the entire family, providing a comfort level for all who are involved.
If you’d like to see the types of plans that are available to you and your family, contact us. We are experts in the area of long-term care planning – and we can help you to develop the one that will work the best for you and those you care about.
- “Unassisted Living: Overcoming Today’s Long-Term Care Challenges” UBS Investor Watch. 4Q 2015.
- Genworth’s 2014 Cost of Care Survey