Preparing for the Unexpected

Your dreams of retirement probably don’t include a stint in a nursing home. After all, when you’ve spent years working and saving, it’s a lot more fun to dream of sailing, golfing, and relaxing dinners with family and friends.

Unfortunately, long-term nursing care is a reality for many seniors. According to the National Clearinghouse for Long Term Care Information*, about 7 out of 10 people over the age of 65 need long-term nursing care at some point. This can mean various things, from nursing care in your home, to an assisted living facility, or even a traditional nursing home. But one thing is for sure; when you’re facing those odds, it’s best to plan for the possibility of needing long-term care.

When planning for retirement, consider these figures**:

• The median national rate for assisted living homes is $3,300 per month, or $39,600 annually
• The median national rate for a private room in a nursing home is $222 per day, or $81,030 per year
• One in five patients remains in a long-term nursing facility for five years or more

These figures are only an estimate, as the type of care required and the general living expenses of your geographic area will factor into the cost of nursing care. But as you can see, based on median national rates, this type of care is not cheap.

Many seniors make the mistake of assuming Medicare will cover the cost of nursing care if it is required. The truth is, qualifying for Medicare can be complicated and difficult. Even if you do qualify for Medicare, long-term nursing facilities are only covered under certain circumstances. Payment is extremely limited, and for stays longer than 100 days you may be responsible for the entire bill.

Since nursing care is extremely expensive, and you can’t count on Medicare to cover the entire bill, it’s best to plan for this possibility years in advance. Don’t take risks with your future! Talk to your insurance and/or financial advisor to be sure your plans for retirement include a provision for long-term nursing care.

*National Clearinghouse for Long Term Care Information, 2012
**skillednursingfacilities.org, 2012

13409 – 2014/5/15