If you have been saving for retirement for 10, 20, or more years, you may be getting to that point when you feel you have enough saved and invested to enjoy retirement the way you and your spouse or significant other want. Even if you’re single, living alone, you will reach a point when you feel confident you’ll be able to enjoy retirement as you have always dreamed.
That can be a wonderful feeling, but have you considered all prospects? For example, what happens in the event you or your spouse requires some type of long-term care in the future? Let’s say you both retire when you’re 65.
Social Security isn’t going to kick in until you are 67 (unless Congress changes the rules once again and moves the retirement age to 69 or 70, for example), so you will be entirely dependent on your retirement savings and investments for the first couple of years. However, maybe you or your spouse suffers a major medical emergency or is involved in an accident at 67. Suddenly, you have a long road to recovery ahead of you.
You may need some type of long-term care.
You might need nursing home care for a year or even longer. Let’s say, for example, you or your spouse suffered a stroke. The road to recovery is going to be long and difficult. Maybe you aren’t expected to be able to walk again on your own, at least not without significant physical assistance to help you.
Just to get to that point in your life again, though, you may spend a year or two in a nursing home or working with physical therapists, home care providers, and more. How much is that going to cost you?
If you haven’t tried to calculate the cost of long-term care, know this: it could completely wipe you out financially within a few years.
That’s why long-term care insurance is so crucial for people who are planning for their retirement, who are saving as they should. You may have life insurance, which is great to protect your spouse or the rest of your family when you pass away, but what about if you survive and still require long-term care?
If you haven’t considered the cost of long-term care, understand that almost every type of long-term care could end up costing you hundreds of thousands of dollars over the course of a few years. The cost of long-term care insurance is a small investment to help protect your retirement savings … just in case.