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Is Your Retirement Prepared for the Costs of Long-Term Care?

Typically, when people think about the biggest risks to their financial security in retirement, health care costs come to mind. However, an often-overlooked risk is the costs associated with long-term care.

For many Americans, the term “long-term care” has a new sense of urgency – particularly for the roughly 76 million of those in the baby boom generation. But what exactly is long-term care?

Long-term care covers a host of varying services that one may need, ranging from in-home care and adult day care to assisted living or nursing home care. It is generally regarded as hands-on assistance that lasts for an extended period of time for those who can no longer care for themselves because of disabilities, illness or cognitive impairments. Regardless of what type of care is required, all forms of long-term care can hit your finances hard.

According to Genworth Financial, the average annual cost of a private nursing home room in the United States is $92,378, while a home health aide ran about $45,760. Many people assume that Medicare and other forms of health insurance will cover these costs, but in reality, long-term care is not considered a medical expense and Medicare will only cover certain aspects.

Medicaid will help many seniors pay for long-term care, but in order to qualify you will have to spend most of your assets, which is not what anyone has in mind for their ideal retirement.

Are you confident that your finances can withstand the burden of long-term care costs?

The Employee Benefit Research Institute reports that the average retirement shortfall for baby boomers is roughly $50,000 – but this rises dramatically when nursing home and home health care expenses are added. With these figures, it’s clear to see why people are worried about having enough money to cover their retirement.

At American Financial Investments, LLC, we are dedicated to providing you with personalized financial solutions and making sure that your plans can provide for you down the road. We are committed to helping you prepare for all of the potential costs you will face in retirement, including health and long-term care.

Although retirement planning can be stressful, trying to predict future health expenses doesn’t have to be. Choosing to work with the right financial professional who can evaluate your unique financial situation and develop a plan tailored to you and your goals can help you live more comfortably in retirement. QCBN


Ronald F. Stevenson, Investment Advisor Representative & Barbara Clark Stevenson own American Financial Investments, LLC, A Registered Investment Advisory Firm. They specialize in Professional Investment and Portfolio Management, Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Annuities, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305

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 Investment advisory services offered through American Financial Investments, LLC a Registered Investment Advisor in the State of Arizona. Insurance products and Tax services are offered through American Financial Security, LLC. American Financial Investments, LLC and American Financial Security, LLC are affiliated companies.


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