Baby Boomer Generation is Unprepared for Long-Term Care Costs
If you’re part of the Baby Boom generation, you’ve lived through an everchanging world and worked your entire life towards the American Dream. Even with all your hard work and planning, you may not be prepared for the costs of long-term care. For the 73 million Baby Boomers, the chances of needing some degree of care are more real than you would think. The associated costs are an even bigger reality check, and many aren’t prepared.
According to the U.S. Administration of Community Living, older adults age 65 or over have nearly a 70% chance of needing some form of long-term care service or support in their later years. Although a third of todays’ older adults may never need long-term care, 20% will need it for at least five years, a cost that may greatly diminish retirement savings. When it comes down to it, being an older adult in the U.S. means facing the possibility of highly expensive long-term care services, even for those resourceful adults that have savings or a retirement fund.
When looking at possible long-term care, the most affordable option in New Jersey is Adult Day Care, which only provides a temporary daily respite and costs an average of $23,400 per year, according to a 2021 Study by Genworth insurance company. For those older adults that need more attentive care, either at home or in care facility, that annual cost could increasing by six folds. These rates have been increasing steadily over the last two decades and most likely will continue to do so.
How can you tackle the long-term care costs that might be ahead of you? It’s definitely imperative to budget for the care you may need. A portion of that budget may be allocated to long-term care insurance, yet it may not be the right solution for what future care you’ll need. Long-term care insurance can cover a variety of services, but you’ll never truly know what you’ll need down the line. Even with what you might perceive to be the right plan, the monthly payment you invest in may not cover the rising costs of long-term care when you really need those services. A $5000 monthly payout may not cover the expenses of a nurse facility that averages between $11,000 to $12,000 a month. Covering every possible scenario may not only be fiscally challenging, but not totally feasible.
This is where Springpoint Choice can guide you to the right long-term plan for your future. Springpoint Choice is a membership program that offers a broad range of services and support throughout your lifetime and helps you maintain your independence and remain at home as long as physically possible. Springpoint Choice offers personalized, one-on-one attention from a personal care navigator dedicated to helping you age in place along with comprehensive financial protection. Springpoint Choice members also have access to our vibrant communities for social and wellness activities. Becoming a Springpoint Choice member offers security that if the time ever comes, you will be prepared for long-term care.
To answer any questions and learn more about how Springpoint Choice compares to long-term care insurance and can provide you with a more personalized long-term care plan, read more here.