One of America’s biggest challenges is the state of long term care and the struggles that many Americans have to face to overcome its costs. Plenty of us spend our lives preparing for the twilight years. The moment we started working, we look to the future. We plan for it the resources that we have now will not last forever. People diligently ticked the boxes on their retirement lists, and yet, many are finding that those actions may not be enough. This brings the questions that many are now asking about long term care planning: how will I be able to plan for the costs successfully?
InsuranceDiaries.com firmly believes that every American deserves a great future, but these concerns are hindering many from attaining that. This is why we urge every individual to strive for knowledge. After all, an informed decision can be the golden ticket to secure the future that you deserve.
If you have any questions, please feel free to send us a message or post a comment down below. We’d love to help remove any concerns that you might have about your long term care plan. Cheers!
Retirement is a big problem in the United States. Social Security is still alive, but it is crumbling. The cost of care is reaching the point where the majority can no longer afford it, and the number of centenarians is rapidly increasing yet their resources are depleting.
So what are Americans doing about this? Not much, apparently.
Many individuals in the prime of their careers are aware of these issues. In fact, 80% of Americans age 30 to 54 believe that they will not have enough resources to cover their retirement needs. However, 45% have not saved for retirement, and this includes 40% of Baby Boomers.
A significant factor in a failed retirement is the lack of planning for long term care costs. The average savings of a 50-year old individual is $42,797. Now let’s look at the prices of long term care services in the country:
Funding care could be done in many ways. You just have to find one that suits you best.
For some individuals, taking matters into their own hands might work. Bear in mind that in order to achieve this, research shows that you will need $1,060,751 in savings to draw $5,000 a month for 30 years. This is assuming 6% annual investment returns and 2% inflation.
These government-funded programs are appealing to many individuals because of the coverage that they provide. However, do remember that these are tailored for specific individuals, and they might not be right for you.
Medicare does not cover long term care if this is the only care that you need. Medicaid’s coverage is broader, but keep in mind that you must meet certain financial and health requirements to qualify.
This type of insurance provides coverage specifically for long term care needs. However, many are often hesitant when they see the price tag on a policy. They can cost quite a hefty sum, especially if you apply late. But it is a product tailored specifically to these requirements, and studies show 90% of policyholders are happy with their coverage.