As you start thinking about retirement, you may envision relaxing on a beach, volunteering for a community organization, or spending more time with your loved ones. But as you’re making plans for what your retirement will bring, planning for your future care and how you will finance it should also be top of mind. Researching care options and what those options cost now will prepare you for what’s to come, so you can limit stress and live your best life well into your golden years.
You may not be able to predict what kind of care you’ll need as you age, but the National Institute on Aging has identified the following as potential risk factors for needing long-term care:
- Age: Risk generally increases as you get older.
- Gender: Women are at higher risk than men, primarily because they often live longer.
- Marital status: Single people are more likely than married people to need help from a paid caregiver.
- Current health and family history: Your genetics can increase the chances that you’ll develop a health disorder or disease.
- Lifestyle: Poor diet and exercise habits can increase a person's risk for needing long-term care.
As you consider these factors, keep an open mind about how you will address your care needs, especially as they change over time. Here are some common options and costs to help guide you with your care planning and financing.
Skilled nursing care
Skilled nursing care facilities charge different rates based on your accommodations and state of residence. Costs range from $225 per day or $6,844 per month for a semi-private room to $253 per day or $7,698 per month for a private room.
With a national average cost of $3,628 per month, assisted living facilities can be less expensive than skilled nursing care or nursing homes. This type of care allows you to maintain your independence but receive help with basic personal care.
Although rates vary from state to state, the average cost of home healthcare aides nationwide is $20.50 per hour, and the average cost of homemaker services or companion care is $20 per hour.
Adult daycare and adult day healthcare
Adult daycare costs an average of $25 to $100 per day, depending on the level of service provided. Although the terms “adult daycare” and “adult day healthcare” are often used interchangeably, they are not the same. Adult day healthcare can be more expensive, since it offers a higher level of care, including medical services. Your costs for adult daycare will likely depend on your income level.
Paying for care
Although you may be in good health now, future care planning is still important. If you are qualified to receive coverage, a Short-Term Care insurance policy may be an ideal solution to help you cover the cost of care you may need as you age. It’s a good idea to invest in this type of insurance while you are healthy, as some pre-existing conditions may disqualify you for coverage in the future.
You could also start saving for these expenses now by opening a flexible spending or health savings account, or by saving or investing your money as part of your overall retirement plan.
If you’d like to learn more about AARP® Short-Term Care Insurance from Medico®, click here to get a quote or receive additional information.
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