Most people who have a financial plan have considered retirement. Fewer have considered what might happen after their retirement years. Some have parents who have reached that point in their lives and aren’t sure which direction to turn because a plan hadn’t been made.
Creating an elder care plan now will help ensure your living expenses or those of your parents are covered when you reach an age when you’re physically or mentally unable to work. In some cases, those in their elder years even require constant care.
Some statistics:
- 70% of people over age 65 will require long-term care at some point in their lives.1
- The average private pay cost of a nursing home stay in 2012 was $88,000 per year. The cost exceeded $100,000 in 10 states.2
- In the U.S., the median annual rate for care ranges from $40,000 for at-home care to almost $84,000 for a private room in a nursing home.3
How do you navigate the possibilities for this stage in life?
Your retirement savings and investment strategy should include an elder care plan that considers living expenses, Medicare and Medicaid coverage, and possibly supplemental long-term care insurance.
Ensure you and/or your parents have established a durable power of attorney and a health care power of attorney. These documents designate someone else to take control of your finances and health decisions in the event that you are unable to do so.
Your FAS Financial Advisor can help you navigate all of your options and help you select the best solution for your particular situation.
1 U.S. Department of Health and Human Services
2 AARP Public Policy Institute
3 Genworth, 2013 Cost of Care Survey