The Real Cost of Long-Term Care in Your State

If you’ve done any sort of reading or research about aging, retirement, or financial planning, you’ve probably seen some long-term care (LTC) statistics. Over 50% of people over the age of 65 will need LTC in their lifetime. More than 15 million Americans are expected to need LTC by 2050. In 2015 LTC expenditures were over $225 billion, and that number is growing. So you know this is something you should plan for. Then the question becomes can you self-insure, or should you look into LTC insurance?

Every year Long Term Care Group (LTCG) collects data from all fifty states and compiles a Cost-of-Care Study to help people better understand the potential expense. The study breaks down costs by state into three different categories:

• Home Health Care - Home Health Aide, LPN, RN
• Assisted Living Facility – One Bedroom Unit
• Nursing Home – Semiprivate Room, Private Room

Mutual of Omaha took the information from 2021’s study and created two fantastic planning resources:

• 2021 Cost of Care Study – shows a list of all fifty states and all expenses so you can compare - and potentially find a less expensive place to retire!
• Cost of Care Calculator – lets you choose state, assumed inflation rate, and years until care is needed in order to more accurately calculate your cost.

LTC Consumer also utilizes that same information to create their easy to navigate guides:

• Cost of Long-Term Care Map – simply click on your state to see the cost of Home Health Care, Assisted Living, and Nursing Home.
• Cost of Long-Term Care Insurance – compares three LTC pricing plans (Good, Better, Best) and breaks down deciding factors.

Based on these figures you can then examine you and your partners health and family history, savings and future earning potential, and how you want to structure your retirement. You can also speak to one of our specialists at LTC Consumer to get further information and advice regarding LTC insurance. Their goal is to evaluate and educate so you feel comfortable making an informed decision about your future.

"LTC costs are going up and your retirement is getting closer."

Your personal cost of care will vary greatly based on your suburb, your family and community care involvement, and the number of hours you actually require hired care. But the study and calculator give you a base amount to plan for. When it comes to hiring people to care for ourselves and our loved ones we want the best, not necessarily the cheapest. We want to know every need is being met in a timely manner with a caring attitude.

A couple of things are certain; LTC costs are going up and your retirement is getting closer. Protect your family and your assets and look into LTC insurance today.