One of the most overlooked expenses in retirement are the potential costs of Long-Term Care. This is often due to the natural tendency to assume "It won't happen to me". However, odds are it will happen to us. In fact, according to the US Department of Health & Human Services nearly 70% of people over the age of 65 will need some form of long-term care. So if you are married, the chance of one of you needing it is even higher.
So what do these costs look like? Genworth has a nice tool on it's website that let's you explore the average cost by state and by regions within each state. Below is a snapshot of the national average (you can click the image below to go to their website and use the interactive tool).
And we can see how this compares for those of us in the surrounding Seattle area
Check out what average costs are like in your area.
Also, below is a look at the average time people use various types of care according to the US Department of Health & Human Services. In addition, they note "One-third of today's 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years."
While long-term care is an often overlooked expense, it is a vital area to be aware of in the planning process.
Adam Jordan, CIMA®, AAMS®
Director of Investment Research & Mangement