Retirement? Think long-term care

0

(StatePoint) When many people consider their retirement, they dream about the vacations they’ll take and the time they will have to relax.

And while many savvy consumers are planning for their retirement financially, experts say that not enough people consider the potential expense of long-term care.

In fact, only one in five future retirees has discussed long-term care expenses with a financial advisor, based on research conducted by Lincoln Financial Group (the marketing name for Lincoln National Corporation and its affiliates) and Hanover Research in October 2014. According to the “Managing Long-Term Care Risks” research, advisors believe potential long-term care expenses are a significant risk to clients’ wealth and retirement goals.

Indeed, according to Long Term Care Group the “2014 Long-Term Cost of Care Survey,” a private room in a skilled nursing home averages $97,611 per year, with costs rising to $147,982 in certain areas of the country. It has been estimated that 70 percent of people age 65 and older will need some form of long-term care.

“It is more critical than ever that Americans understand the need to properly prepare for possible long-term care events in the future, especially as the population ages. Planning ahead for long-term care expenses not only helps protect a retiree’s finances, but can also help protect the entire family from having to make hard choices during an emotional and difficult time,” says Andrew Bucklee, Head of Insurance Solutions Distribution at Lincoln Financial Group.

November, which is Long-Term Care Awareness Month, is an excellent time to get a better understanding of the long-term care landscape, the cost of care, and the solutions available to address long-term care expenses. While it can be challenging and uncomfortable to have these conversations, Bucklee encourages everyone to take the following steps.

• Plan ahead with an advisor to help protect your family and your wealth from potential long-term care expenses.

• Consider all options, including hybrid solutions to help address long-term care expenses with greater financial flexibility.

• Stretch your post-retirement dollar by downsizing your residence, if possible.

• Inflation can be a major source of trouble for retirees because it drives down the real value of savings and reduces purchasing power — an effect that’s exacerbated by higher rates of inflation in such categories as health care, a high-spend area for retirees. Seek out retirement products that help mitigate the effects of inflation.

Free retirement saving tips and tools can be found at beachieflifeofficer.com.

Don’t let a long retirement catch you off guard. Through a combination of careful planning, a willingness to receive financial guidance, and some creative approaches to saving, you can help ensure a comfortable retirement.

Staff report

No posts to display