Those Texas residents and others around the country who are nearing retirement age are likely looking forward to leaving the schedules and routines of the working world behind. While most will certainly miss the paycheck they once received, many will rely on retirement funding from corporate plans or personal accounts. Some may have even considered long-term care planning while building their retirement portions. However, those thinking about obtaining long-term care insurance should do so before it becomes cost-prohibitive.
Many Texas residents and others around the country have spent a lot of time planning for their retirement years. While some may intend to travel. others might be looking forward to starting a completely different career or devoting time to a hobby. Most people don't like to think about how life might be for them should they become incapacitated and are unable to care for themselves. While not necessarily a welcome topic to discuss, long-term care planning can alleviate many potential concerns in the future.
Recent statistics show healthy, retired couples over the age of 65 could pay $275,000 for healthcare during their retirement years. Residents of Texas and elsewhere can expect to pay an additional $97,000 a year for long-term care services in a private room in a nursing home. Studies show the cost of long-term care has increased three times faster than inflation since 2004.
Foster homes may be an alternative to nursing homes for seniors who need daily living help but not medical care. These homes, also known as adult care homes or board-and-care homes, provide a home-like setting for clients with round-the-clock supervision, social interaction and independence. In Texas and other states, these homes blend into local neighborhoods and are an affordable housing option for seniors who need long-term care without the need for nursing homes.
Recent studies show that over 70 percent of seniors will require extensive healthcare services after age 65. The Employee Benefit Research Institute has determined that only 13 percent of elders have secured long-term care insurance to avoid the high out-of-pocket costs associated with long-term care. Many residents in Texas and other states will face high medical costs without the protection of LTCI.
Retirement should be a time to look forward to. However, many will worry about the transition from paycheck to Social Security check and from company insurance to Medicare. The latest study from Nationwide Retirement Institute shows that 73 percent of well-to-do seniors say their retirement-related fears are centered on the rising cost of healthcare. In Texas and elsewhere, 70 percent of seniors age 65 and over will need long-term care over the course of their lifetime.
One of the greatest challenges for any child is making decisions about an elderly parent's healthcare. Studies show that children are often sandwiched between raising their families and caring for elderly parents. They are known as the Sandwich Generation. Families in Texas and other states are often faced with the daunting task of securing long-term care for aging parents.
With most women outliving their spouses, this puts them in a position where they will be required to manage their own finances. Recent reports show that women are not as open as men about discussing money. Many lack confidence or feel ill-equipped when planning for long\-term care and managing investments. In Texas and elsewhere, women will spend more than $190,000 on health care during retirement.
Americans who are close to retirement age say they do not know how much money they will need to live a comfortable life after they stop working. Only 16 percent say they are confident that they have saved enough to sustain them during their golden years. For those turning 65, there is a significant chance that long\-term care will be a factor in their future. In Texas and across the country, long-term care costs exceeded $225 billion in 2015.
After a lifetime of working, most are excited for the time when they can retire and sit back, relax and enjoy life. Saving for health care and investing in long\-term care insurance before retirement can reduce the stress that many seniors now face. In Texas and other states, many seniors claim their golden years are being tarnished because of high health care expenses.