Long-Term Care Stats That Will Blow You Away

One reason many people worry about not having enough money in retirement is that they (quite reasonably) fear needing long-term care and not being able to afford it -- or having to wipe out their savings in order to pay for it.

69% will need long-term care.

A key thing to know about long-term care is that there's a good chance you'll need it.

Fully 69% of those turning 65 this year will need some kind of long-term care during their life, according to longtermcare.gov:

Kind of Care	Average Duration of Care	Percent of People Who Use the Care
Any long-term care	3 years	69%
Unpaid care only, at home	1 year	59%
Paid care at home	Less than 1 year	42%
Any care at home	2 years	65%
Nursing facility	1 year	35%
Assisted-living facility	Less than 1 year	13%
Any care in facilities	1 year	37%

Data source: longtermcare.gov, as of October, 2017. 

I.E USA Stats but is Australia any different??

 

1 to 3 years is how long you'll likely need it

Another important thing to understand is that when we need long-term care, the period of time we need it for is typically about one to three years -- which might be a much shorter period than you assumed.

That information can help you plan and save for retirement, and for any possible long-term care needs, but remember that the numbers above are averages. Some people will need long-term care for much longer periods, and some for significantly shorter periods. (A 2017 AARP report estimated that about 14% of people will need long-term care for more than five years.)

  15.2% will spend $250,000 or more

This bit of data is likely to make your eyes pop: 15.2% of people who turn (or turned) 65 between 2015 and 2019 will spend more than $250,000 on long-term care during their lives, according to a 2016 report from the National Association of Insurance Commissioners (NAIC).

Making matters worse is the fact that most of us are likely to spend another big bundle on healthcare in retirement:

A 65-year-old couple retiring today can expect to spend an average of $280,000 out of pocket on healthcare expenses (not including long-term care, over-the-counter medicines, or most dental care) over the course of their retirement, per Fidelity Investments.

Clearly, you should have some kind of plan for how you'll pay for healthcare and long-term care in retirement, and you'll need to execute that plan successfully.

Ignoring your future healthcare needs can be disastrous to your financial health.

What is long-term care?

Long-term care, also called custodial care, refers to professional help with "activities of daily living" (ADL), as medical providers call them. These activities include:

• Bathing

• Dressing

• Using the toilet

• Transferring (to or from a bed or chair)

• Caring for incontinence

• Eating

Typically a person will qualify for long-term care when their doctor or health provider certifies that they're unable to perform at least two of the ADLs from this list.

How will I pay for long-term care?

If you live long enough, you'll likely need some form of long-term care.

While you may be able to get some free help from a relative,

it's possible that no one will be available or able to provide the level of care that you end up needing.

there are 2 simple alternatives for your possible problem.

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