Retirement Planning’s Blind Spot: Where Long-Term Care Fits
Long-term care is one of the biggest gaps in most retirement plans. Most people don’t know what care actually costs, or what’s covered when they need it. Planning for it means deciding in advance whether you’ll pay from savings, rely on family, or use long-term care insurance.
Why do care costs get left out?
Many people assume Medicare will cover it. It doesn’t cover ongoing custodial care.
Timing and duration are unpredictable, which makes it hard to model.
It’s an uncomfortable thing to plan for.
What could care cost?
At national median rates, close to full-time help at home runs about $6,700 a month, assisted living about $6,200, and a semi-private nursing home room about $9,585. (CareScout) See How Much Does Long-Term Care Cost?.
What are your options?
Self-fund: set aside a dedicated pool for care, separate from other retirement goals.
Family: often part of the plan, but it comes with real costs to them.
Long-term care insurance: a dedicated source of funds for care, so your other savings can stay focused on everything else.
Medicaid: available after you’ve spent down most of your assets. See Long-Term Care Insurance vs. Medicaid.
Where does long-term care insurance fit?
It turns an unpredictable cost into a planned one. With the coverage we offer, premiums are guaranteed never to increase, and if you never need care, a death benefit goes to your beneficiaries.
What should you ask your financial advisor?
Does my plan account for long-term care costs?
What would happen to my plan if I needed several years of care?
How would paying for care affect my spouse or partner?
Staying Power is a licensed insurance agency that helps people fit long-term care into their retirement plan.
A licensed long-term care agent can work alongside your advisor. Get started to see what care costs and how to fund it.
Frequently asked questions
Should my financial advisor handle long-term care insurance?
Some advisors are licensed to sell it. A licensed long-term care agent can also work alongside your advisor.
Can I use an HSA to pay long-term care insurance premiums?
Some long-term care insurance premiums may be eligible for HSA reimbursement or a tax deduction, subject to age-based limits. Talk with a tax advisor.
