Many baby boomers are concerned that a long-term illness could wipe out their retirement savings. That's because skilled nursing and assisted living can be very expensive, and Medicare only covers a limited amount of the expenses. The annual cost of long-term nursing care can range anywhere from $60,000 to $93,000. With proper planning, however, there are some resources to make long-term care for Ohio families a lot more affordable.
According to the Genworth Cost of Cary Survey, the median price of a nursing home is $8,000 a month. Unfortunately, an average social security check is only $2,000 a month. The U.S. Department of Health and Human Services says that 70 percent of Americans will require long-term care at some time. With good planning, however, Ohio seniors may be able to cover the cost of care without sacrificing quality.
Many Ohio residents contemplating retirement talk to their financial planners about their investments, Social Security benefits and taxes but neglect to discuss health care. Planning for health care costs is just as important as creating a financial plan because a sudden health crisis could drastically impact a retiree's finances.
Planning for long-term care is an important consideration for aging Ohio residents. It is a good idea for adults who are approaching retirement to have a conversation with their children about their plans for retirement and what should happen in the event of a serious illness. This conversation should include financial planning, estate planning and who should make important decisions about the senior citizen's long-term care.
Ohio adults might want to think about long-term care planning since, according to the U.S. Department of Health and Human Services, around 70 percent of people at or older than 65 will need some type of long-term care. Women are more likely than men to end up in a long-term care facility.
As the costs of long-term care increase, people in Ohio are more concerned with the specifics of providing for themselves in the event that they need care later in life. For those who are planning to rely on Medicaid to cover some or all of the expenses, it's important to understand the way the program looks at assets. Married individuals may want to consider the way their assets are owned and classified.
At the end of each year, older Ohio residents and others throughout the country receive something called a Income-Related Monthly Adjustment Amount (IIRMA). It is sent by the Social Security Administration (SSA) and lets a person know how much that they will pay in Medicare premiums in the following year. In 2018, the typical retiree will pay $134 a month in Medicare Part B premiums, which are generally deducted from social security benefits.
Veterans and the surviving spouses of veterans in Ohio may be eligible for a little-known benefit from the Department of Veteran Affairs. This program offers monthly benefits to help to pay for long-term care when people grow older and need help.
Ohio residents may not think it necessary to consider long term care planning while they are still so young and healthy as they are in their 50s. But that's exactly the point. Long term care is a thing that becomes much more difficult to plan for and establish for those who wait until they need it. Generally speaking, there are three approaches people take when it comes to planning for long term care. They plan to rely on Medicaid or other government programs, pay for it themselves or purchase insurance policies to cover costs.
Ohio residents may be able to live for 20 or 30 years after they retire thanks to advances in technology. While living longer may be a nice thought for many, it also means additional financial planning as well as planning for long-term health care needs. People of the age of 65 have a 70 percent chance of eventually needing some sort of long-term care, according to the U.S. Department of Health and Human Services.