We’re living longer.
That means more of us over the age of 65. Currently, there are approximately 56 million Americans over the age of 65, and the U.S. Census predicts that by 2030 that number will increase to approximately 73 million. Moreover, by 2034 older Americans will outnumber children for the first time in our history. That means there will be a greater demand for:
- Health care
- In home care
- Assisted living facilities; and
- Nursing homes
So why should you care?
How This Trend Affects You
Even if you’re in good health, this trend will likely affect you in the future.
That’s because you’ll have parents, grandparents, aunts and uncles, or siblings who will need long term care. Or you and/or your spouse will need it. And it comes with a hefty price tag.
In Florida, the current average monthly cost of a semi-private room (meaning a shared room) in a nursing home facility is approximately $8,500.
How Will You Or Your Love Ones Pay For It?
There are three main ways to pay for long term care:
- Long term care insurance;
- Your own money; or
- Medicaid
Most people don’t have long term care insurance, and if they do, it usually won’t pay for all of their long term care costs.
If you use your own money, it can be depleted quickly depending on the size of your nest egg, which will leave your spouse in a pinch if they are otherwise healthy.
So, for many, Medicaid becomes an attractive, and sometimes critical, option. And it’s possible to qualify for Medicaid without draining all of your assets, but this takes planning.
So, don’t dismiss the numbers. We’re living longer and the population is getting older. That means it’s likely that long term care costs will affect you or a loved one in the future.
And those costs are significant.
