This Guest Post is from Annabelle at Elder.center.com. As you will see in the article, most women will need some type of long-term care later in their life. And that care is E.X.P.E.N.S.I.V.E. In her article, she covers some ways to help defray the cost of this budget-busting type of senior care. Enjoy!
Secrets of Aging shares some commonly accepted and proven tips, techniques and programs you can (and should) be doing to stay as young as you can — both mentally and physically. Contact us today for more information!
Image from Pexels
According to research about long-term care incidence on a forward-looking basis, an estimated 79 percent of women aged 65 and older will need long-term care at some point. The costs of this type of care can be steep. National average costs in 2016 for long-term care ranged from $20 an hour for homemaker services to $290 a day for a private room in a nursing home. USA Today notes that a 65-year-old woman today can expect to incur as much as $138,000 in long-term care costs over their expected lifetime.
You may be aware of the expenses associated with long-term care. What you may not be aware of is how little of it is covered by Medicare. Medicare is an invaluable resource for seniors that helps pay for everything from preventative medicine to hospital visits, but there are some big gaps in its coverage. As a result, some people enroll in supplemental Medicare Advantage plans to add coverage such as dental and vision care.
If you are currently eligible for Medicare or are nearing the age of Medicare eligibility, it’s important to get a better understanding of how to navigate some of the vital enrollment dates. Research and plan to have decisions made ahead of time with a few of these tips from Secrets of Aging.
Long-Term Care Insurance
The most obvious way to prepare for eventual long-term care needs is to invest in insurance specifically designed for this purpose. The thing about insurance, though, as pointed out in the Chicago Tribune, companies are aware of the surging prices of long-term care and premiums are going to reflect that. For example, a 55-year-old single woman can expect to pay $2,150 a year for long-term care insurance. The younger you are when you invest in long-term care insurance, the less you can expect to pay. Of course, it has its risks, but insurance is the most secure way to make sure you have all options open to you in the eventuality that you will need long-term care.
Reverse Mortgage
If you own your home, a reverse mortgage is a great way to leverage its value to pay for long-term care. As long as you don’t have any plans to move and you don’t plan to leave your house to anyone, a reverse mortgage can be safe, but it’s always smart to consult a financial advisor and get an idea of your home’s worth before making such a large financial decision.
Health Savings Account
A Health Savings Account (HSA), is a great option for younger women who want to be proactive about financially planning for long-term care. Contribution limits can change year to year, but for 2022 the contribution limit for self-only HSAs is $3,650 per year. This money is saved tax-free and can be withdrawn as such as long as the funds are used to pay for approved health care services if you have an HSA-compatible high deductible health insurance policy.
HSAs allow you to use and transfer funds to pay for some of the heaviest costs you’re bound to experience in retirement. This includes the costs of long-term care like assisted living facilities or nursing homes. Funds can also be withdrawn to pay for non-approved costs; you simply have to pay taxes on whatever you take to do so.
The majority of women will have to pay for long-term care in their senior years. While Medicare is helpful when it comes to paying for health services, it will not cover assisted living facilities or nursing homes. There are different ways to plan for these costs from insurance to health savings accounts. The right option depends on your age and current financial goals.
Leave a Reply