Planning for the future is not easy, especially when it comes to making choices that pertain to health care needs. It’s not easy for a person to determine what type of help he or she may need, and it may be difficult to consider the possibility that a person may need long-term care one day. As a result, even people with strong retirement plans often overlook the importance of planning for the potential of nursing home care one day.
No one wants to move into a nursing home in the future, but for many, it will be a necessity. Family members may not be able to help an older loved one with medical needs or provide the physical support necessary. Nursing home care is expensive, and it’s worthwhile to start planning for this potential need now.
Calculating expenses
It can feel nearly impossible to know how much money a person will need for retirement years. You will have to have some sort of savings and income to pay for housing expenses, daily necessities, transportation and health care. Nursing home care is an expense that can quickly wipe out a person’s savings and financial security.
An estimate suggests that a couple that retired in 2019 could face as much as $285,000 in health care costs over the course of their retirement. Most people have not properly accounted for the sheer expense of medical care. Some of the following steps may be useful:
- Estimates suggest that a person planning for retirement save around $7,000 for health care costs for each year of retirement.
- One way a person can adequately prepare for this cost is to increase his or her contributions to investments and long-term savings accounts well before retirement age.
- A person may also want to consider insurance plans that can help cover the cost of a nursing home in the future.
The sooner a person starts planning for retirement, the more likely it will be that he or she has enough to cover expenses. Planning is complex, and it may help to speak with an Ohio attorney about Medicare planning, retirement planning and other estate planning needs you may have.
An assessment of your case can help you understand what steps you need to take to have legal and financial security long-term. No matter your income or your age, it is beneficial to start thinking about what you will need in the future.
