Be “In the Know” About Extended Care

BY KERRY ANDERSON, ANDERSON WEALTH & RETIREMENT

In your retirement strategy, you’ve likely put a good deal of thought into putting away enough money to enjoy your life once you’ve put the daily grind in the rearview mirror. Like many, you’ve probably planned and prepared for the pursuit of your personal interests and favorite activities, maintaining your current lifestyle (or perhaps even improving upon it a bit) and maybe even experiencing some travel.

However, it’s also important to anticipate other needs as well. While you may be already thinking about your health insurance (including Medicare) it’s important to remember that you may at some point during your retirement years require some sort of extended care.

Extended care costs vary state by state and region by region. The 2020 national average for care in a skilled care facility (single occupancy in a nursing home) was $105,850 a year. The national average for care in an assisted living center (single occupancy) was $51,600 a year. Home health aides cost a median $24 per hour, but that rate may increase when a licensed nurse is required.1 If you’re thinking “that adds up,” you’re right.

The good news is that just as you are strategizing for the good life, you also have choices when it comes to thinking about extended care. Being “in the know” about available extended care funding options suited to your specific situation can help you formulate a comprehensive retirement strategy and potentially spare you and your family significant added expense and stress.

Kerry Anderson is owner of Anderson Wealth & Retirement in Lincoln, NE and has 29 years of experience in the financial services industry. He can be contacted at 402-265-5753 or at andersonwealthgroup.com.

Sources:

1 US Department of Health and Human Services, February 18, 2020

2 GenWorth.com, 2021