Millions of Americans right now are worried about their retirement portfolios. As the stock market has dropped significantly due to COVID-19, many people are wondering how things will play out in the coming years.
On top of the stock market concerns, more people are starting to wake up to the fact that most pensions — public and private — are significantly underfunded. That means a person who is banking on their pension for retirement might have to rethink that confidence.
For those who want to protect their retirement investments as best they can, they may move money out of their 401(k), invest in other options, but even if they make all the right moves, save several hundred thousand dollars by the time they retire, guess what? In the event they or their other dependent (usually their spouse) require some type of long-term care, that could be gone within a few years.
It’s time to think about long-term care insurance.
Very few people actually think they will ever need long-term care in their future. Yet, the older people get, the more likely they will need some type of long-term care.
Even people in their 40’s and 50’s who support an aging parent or grandparent at some time in their life with basic tasks of everyday life fail to recognize the possibility they might require that level of assistance in the future, too.
As people live longer, the risk of needing long-term care also increases. Did you know that the average cost of nursing home care in the United States is $85,000 and climbing? It is outpacing inflation. That’s just an average across the country.
You begin to realize just how significant this expense can be and how it could directly impact your retirement savings. No, Medicare and Medicaid will not kick in to cover long-term care expenses until or unless you use up all of your available assets.
That usually includes the value of your house. Even if you have completely paid off your house by retirement, you would have to use up the value in that before Medicare or Medicaid covers those long-term care expenses like a nursing home.
Now is the time to protect yourself and your retirement.
As you move through your 40’s and into your 50’s, it is the ideal time to look into long-term care insurance and get a quote. We don’t know what tomorrow will bring, but when you’re protected against the potential expense of long-term care, it’s one less thing to worry about during volatile financial times.