Long-term care is said to be a woman’s issue. Even if she is married, odds are she will outlive her spouse and will have to endure long-term care costs on her own.
Long-term care is one of the trickiest topics in financial planning. The potential costs are quite high, yet the available insurance products leave something to be desired.
Someone turning age 65 today has about a 70 percent chance of needing some type of long-term care during their lifetime. While one-third may never need long-term care, 20 percent will need it for longer than 5 years. The average length of time people need long-term care services is 3 years.
According to Genworth, In the Los Angeles area, the average cost for 3 years of long-term care is $380,514 ($126,838 per year) at 2020 rates. That cost is projected to be $687,252 ($229,084 per year) in 2040.
The big question is whether those who need help will have the resources available either in terms of family or friends to receive informal support or sufficient finances to pay for formal support.
If you have questions about how your financial plan addresses your long-term care needs or if you don’t have a plan at all, feel free to contact me at 310 370-7776.