Retirement planning can be something that is actually a lot of fun because you have the opportunity to consider the things that you would like to do when all of your time is your own. Your active retirement years are indeed a reward of sorts for a lifetime of hard work and commitment to raising your family, but when you are playing from a financial perspective you have to consider the totality of your post-work years.
The reality is that seven out of every 10 people who reach the age of 65 will need some form of long-term care eventually, and this can be in-home care, residence in an assisted-living community, or a stay in a nursing home. The costs associated with long-term care are quite high and on the rise, with the national average for a year-long residence in an assisted-living facility sitting iat nearly $40,000 and a private room in a nursing home carrying a $83,500 annual price tag. New Jersey is well above these national averages.
Below we would like to look at a handful of ways that people address these costs.
Perhaps the simplest way to address the expenses that go along with long-term care is to keep them in mind when you are creating a long-term financial plan. Knowing that you have the resources to pay your own way regardless of contingencies that may crop up is a good feeling, and this is one the reasons why many people take advance planning so seriously.
Long-Term Care Insurance
Long-term care insurance is an option that is available to you as well, but there is a delicate balance involved with this type of coverage. It is more affordable if you obtain the coverage long before you expect to need it, but do you want to be paying insurance premiums for 40 years? By the same token, if you wait until you have reached an advanced age the cost of long-term care insurance can be stifling.
Medicaid is a government program that many seniors utilize as a way to pay for long-term care. Though it is intended for those who do not have the means to pay for their own medical care, it is possible to qualify while still retaining possession of much of your personal property in many cases.