Assisted Living Costs Can Eat Through Your Nest Egg

Here’s the scenario: You’ve worked and saved money your whole life to be able to enjoy your golden years. Then, after fifteen or so years of blissful retirement, your retirement fund has depleted and you find yourself in need of assisted living services. Something you did not save or prepare for. Nationally, the average cost for a senior care facility is $3,500 per month. A ten-year stay would cost you more than $400,000! The nest egg you so diligently saved for your entire life is cracked and scrambled in an instance.

It can get worse. If you’re married and you or your spouse require a care facility, the other spouse would likely be left with nothing to live on. A frightening scenario played out all too often. You want to be able to enjoy your retirement of course, but if circumstances dictate extended care then you at least want your investments to out live you and to take care of your family.

So what should you do?

The best way to protect you, your significant other and your assets from incredibly high costs is to have the right insurance plan in place. Starting at age 60, you should consider buying assisted living insurance. Prior to 60 years old, the chances of needing living assistance is extremely low, but every year after age 60 the odds go up. And with each year, the price of the insurance goes up as well. So plan ahead and add long-term care to your insurance plan. Then, whatever costs your health insurance or government assistance does not cover, your long-term care will, and your retirement investments will not have to take the hit.

Shop around for the best insurance premiums. Compare prices and coverage plans. Think of it as the same as buying car insurance. Which company provides the best coverage for the lowest price? You want to strongly consider them. And even though you may be less likely to go into an assisted living facility at age 60, by buying the insurance earlier, you can lock in a lower premium.

The important thing to remember is that your golden years should be focused on quality of life. Prepare for the worst so you may enjoy any scenario without worry. To be financially prepared to cover these costs, instead of letting that burden fall on loved ones, is a wise decision. Love your family and yourself by planning for the possibility of needing assisted living

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