Living longer is something most of us hope for. More years with our spouse. More time with children and grandchildren. More time to travel, enjoy retirement, and simply live life.
But longer lives also create a planning challenge that families sometimes overlook: the longer we live, the greater the chance that we will eventually need help with our care.
Today, someone who reaches age 65 can expect, on average, to live nearly another 20 years. Unfortunately, not all of those years will necessarily be healthy and independent.
As we age, the chances of developing memory problems, chronic illness, mobility issues, or other conditions increase. That may mean needing help at home, moving to assisted living or memory care, or eventually needing nursing home care.
For families planning for retirement, that risk deserves just as much attention as saving enough money to retire.
Why This Matters
The numbers are striking.
About 70% of people who reach age 65 are expected to need some form of long-term care during their lifetime. Nearly half will need some type of paid care rather than relying entirely on family.
And roughly one out of every three people turning 65 will eventually spend some time in a nursing home.
Long-term care does not necessarily mean a nursing home. It can include help with everyday activities such as bathing, dressing, eating, taking medications, or safely moving around the home. Care might be provided at home, in assisted living, in memory care, or in a nursing facility.
The amount of care needed can also vary greatly.
Some people need help for only a few months. Others may need assistance for several years. On average, someone reaching age 65 can expect to need about three years of some type of long-term care during their lifetime.
That uncertainty is what makes planning so important.
A short period of care may be manageable. Several years of assisted living, memory care, or nursing home care can have a very different financial impact.
Medicare also creates confusion for many families. Medicare generally does not pay for ongoing long-term custodial care. Medicaid can help pay for nursing home care for people who qualify, but Medicaid has detailed financial rules involving income, assets, transfers, and other planning decisions.
That is why families should understand their options before a health crisis occurs.
Planning ahead may provide choices that simply are not available later.
Simple Lesson
A longer life deserves a longer-term plan.
Retirement planning should not focus only on whether you have enough money to live on. It should also consider what happens if you or your spouse eventually needs help with care—and how that care could affect the financial security you worked a lifetime to build.
Action Step
Take some time to review your long-term care plan.
Ask yourself: If I needed care for several years, where would I want to receive it? Who would help me? How would we pay for it? And does my current estate plan include a strategy for protecting my spouse and family if long-term care becomes necessary?
Those are much easier questions to answer before a crisis.
If this topic raises questions for you or your family, feel free to call (517) 548-7400 or contact us online: https://www.michiganestateplans.com/contact-us
