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Extended care… Will you need it?

Extended care… Will you need it?

June 16, 2022

When it comes to your retirement strategy, you’ve likely put a lot of thought into making sure you’re putting away enough money to enjoy your retirement once you’ve stepped away from the workforce. You will finally have time for travel, hobbies, family time, etc. But have you taken into consideration the possibility that somewhere down the line you might need some type of assistance with daily living activities?

When planning for your retirement, you should consider all the possible risks. One that is commonly overlooked is the potential need for some form of extended-care for you and/or your spouse. Many Americans prefer not to think about this need for assistance or who will provide it. They also underestimate how likely it is they will need it and how much it will cost. While the level of care needed varies from person to person, in some cases the cost can be staggering and, if not planned for, can derail even the best financial strategy.

According to, most Americans will eventually require some sort of assistance with their daily activities, from getting dressed to getting around. They also say that someone turning 65 today has almost a 70% chance of needing some type of long-term care support, and 20% will need it for longer than 5 years.

With the national median cost of a private room in a nursing home reaching $9,034 per month in 2021, according to Genworth’s Cost of Care Survey, the cost of that care can add up fast and quickly drain your savings. Won’t it be covered by insurance or Medicare you ask? Not really. Most health insurance doesn’t cover long-term care costs, and Medicare won’t cover most expenses either*. Medicaid may pick up some expenses, but you typically only qualify for it when you have spent down all your assets.

The good news is that you have a variety of options when it comes to planning for extended care costs including long-term care insurance, personal income and savings, life insurance, Health Savings Accounts, and annuities.

Whatever you do, have a plan in place to help protect you from a future long-term care event. Remember, it’s never too early to plan for your future!

Please reach out if we can be of help.