Long-Term Care Costs Continue to Skyrocket in Florida, Nationwide
According to recently released numbers from Fidelity Benefits Consulting, the average 65-year-old couple will need to save nearly $400,000 to pay for out-of-pocket healthcare and long-term care as they grow older. That number is about $60,000 more than the average couple’s life savings in their 60s, including their home equity.
Forbes reports that one of the biggest takeaways from the Fidelity study — which incorporated long-term care costs for the first time — is that most Americans have not saved nearly enough to cover these costs in old age. This is because millions of middle class people live paycheck to paycheck, with little left over to save. They also tend to misunderstand the benefits that Medicare does and does not provide.
It’s also worth noting that roughly 67 percent of people who are currently 65 years old will need some type of long-term care before they pass away. About half will need elevated levels of this care, to the point that they would need to claim benefits from a long-term care insurance policy. Most people do not have this type of insurance.
These numbers also do not take into account daily living expenses, such as food, transportation and utilities.
The importance of planning
All of this paints a grim picture for the standard of living of older adults in the United States in the future. For many people, their only choice will be to spend down their assets until they have nothing left, and then go on Medicaid. They may also be forced to borrow against home equity and run up credit card balances.
With this in mind, it’s important to engage in cohesive planning for your long-term care as you reach retirement age. If you have any questions about how you should be preparing for your future, consult a Florida Medicaid planning attorney with the Charles Law Offices today.