Howard Gleckman reports for Forbes on why everyone 65 and older should expect to need long-term care. Most people do. And, there’s no way to know in advance whether you will or not. Here’s what you need to know to plan for long-term care.
What proportion of older adults need long-term care? More than 60 percent of people need moderate or significant amounts of long-term care. Only one in five older adults do not need any long-term care. People between 65 and 70 who say they are in very good or excellent health are less likely to need it. About 30 percent of them will not need it.
Will you need to pay for long-term care? About half of people over 65 will pay for some long-term care. Others depend entirely on family and friends.
How long might you need long-term care? Overall, older adults need significant long-term care for an average of three years. But, if you need long-term care, you will typically need it for five years. More than one in five people need it for more than five years. That said, lots of people need it for less than a year.
What types of care do people need? Typically people need help with activities of daily living, such as bathing, toileting and eating, for four years. And, many people need these supports for way more than four years.
What will long-term care cost? The average cost is $140,000. And nearly one in five people will spend more than $250,000. But, half of people pay nothing.
How much savings does a couple a need to cover health care costs? Fidelity estimates that, in addition to Medicare, a couple at 65 needs $300,000 in savings to cover medical bills in retirement. Wealthier, better educated older adults are less likely to need serious care and will need to spend less on care, on average.
Is it worth buying long-term care insurance? It’s almost always better to set aside money to cover long-term care than to buy insurance. What the companies call level premiums tend to rise significantly over time, so a large portion of people who buy this insurance end up dropping it after paying in a bunch of money. Moreover, those who have it too often find that it does not cover a significant part of their costs. Insurance generally does not kick in for several months, which means you pay out of pocket for your care during that time. And, it generally has a cap, leaving you to pay for a big chunk of the costs.
Here’s more from Just Care:
- Beware of steep premium increases on long-term care policies
- Long-term care at a glance; many of us will need it
- Government-administered long-term care insurance is long overdue
- Medicaid coverage of home and community-based care
- Traditional Medicare offers better home care benefits than Medicare Advantage
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