A crisis in care for the aging population is unfolding. According to the Genworth annual survey of care costs, private room nursing home care in Maryland hovers around $120,000 per year with an annual growth rate of about 5%. Assisted living facility costs exceed $60,000 per year and in home care hovers around $50,000 per year.
The numbers aren’t the whole story. Genworth is a provider of long-term care insurance. The insurance industry is fast retreating from providing long term care insurance. Past miscalculations on costs and the number of persons who would use their benefits from policies purchased had a negative impact on projected profits. Few insurance companies dare offer such policies any longer. And the premiums for the policies offered are rising.
The segment of our population reaching ages in the 80s, 90’s and even centenarians is increasing. Any reader of this is likely to live far longer than their parents. Yet, we may be financially ill prepared to sustain ourselves in a comfortable residence and desirable situation.
Being cognizant of these financial factors is an important element of estate planning. What is your plan to secure the quality of your life as an elder? Make time now to review, rethink and reengage in your retirement planning.