Long-Term Care Planning for Retirement

Long Term Care

Did you know that according to the Kaiser Foundation, 70% of individuals need long-term care at some point? On average, women require 3.7 years of long-term care, while men require an average of 2.2 years. Unfortunately, 20% of people need more than five years of long-term care. These averages mean financial planning for such care is a necessity, not a luxury.

Why Planning Matters

At LaBrunerie Financial, we understand the many reasons it is essential to plan for these situations. First, planning is critical because your need for long-term care significantly impacts your spouse. For instance, they may need to be your caretaker, which is taxing mentally, physically, and emotionally. In addition, without proper planning, Medicaid assistance may be your only option. Unfortunately, qualifying for Medicaid means liquidating assets and spending down, which significantly impacts the quality of life for your able-bodied, surviving partner.

Next, your need for long-term care often impacts your children. For example, depending on your situation, they may need to contribute time, money, or both to your care. In addition, their contributions often influence their retirement plans and the care and education of their children, which is the last thing you want. It may also affect their job opportunities and family dynamics with the additional stress and time they offer for your care.

Finally, a need for long-term care impacts your quality of life substantially. For instance, depending on the circumstances, you may have limited options for home care, and the quality of life in care facilities varies greatly. As a result, people often struggle with choices between private or shared rooms, whether the facility offers entertainment activities like TV and exercise, whether visitor opportunities meet their expectations, and whether the quality of care is acceptable for their stay. Unfortunately, the cost difference between adequate and sub-par care is substantial and forces you to make difficult choices if you are not well prepared.

Planning Options

Luckily, there are several planning options available to mitigate these issues. Our financial advisors are here to help you determine the best course of action for your unique situation. We are happy to help you better understand the differences between self-insurance, long-term care traditional insurance, long-term care hybrid insurance with annuity options, and Medicaid. Understanding is vital to developing the right plan for your future based on your circumstances.

No one wants to make a major financial decision during a high stress event where the decision is time sensitive.  Having a plan and discussing it with your family before the need arises is a key to making the most of those final years and reducing stress for both you and your family. Remember, it is never too soon to plan for your future, especially in a world brimming with uncertainty. So contact us today for more information on our financial planning services. We are here to help!

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