Self-Funding
Using personal income, savings, investments, or home equity to pay for care.
Protecting Your Retirement From the Cost of Extended Care
Long-term care is one of the most difficult retirement issues to discuss. It is also one of the most important.
What Is Long-Term Care?
An extended care need may affect more than healthcare expenses. It may affect a spouse’s financial security, family relationships, retirement savings, and the assets you hoped to leave behind.
Long-term care generally refers to ongoing assistance needed because of illness, cognitive decline, disability, or difficulty performing everyday activities. Care may be provided:
- At home
- In an assisted living community
- In an adult care setting
- In a memory care facility
- In a nursing facility
- By family members
- By professional caregivers
Long-term care is not limited to nursing homes. Many people prefer to receive assistance in their own homes for as long as possible.
The Financial Impact on a Spouse
For married couples, one spouse’s care need may create two financial responsibilities at the same time:
- Paying for the care of one spouse
- Preserving enough income and assets for the spouse who remains at home
Without planning, a long-term care event may force a family to spend assets faster than expected or make difficult decisions during an emotional time.
Common Ways Families Address Long-Term Care Risk
There is no single solution for everyone. Options may include:
Traditional Long-Term Care Insurance
Coverage specifically designed to help pay qualifying long-term care expenses.
Asset-Based Strategies
Certain life insurance or annuity arrangements may provide benefits that can be used for qualifying care while also providing other contractual benefits.
Family Care
Family members may provide some or all care. Even when unpaid, this can create emotional, career, and financial strain.
Government Programs
Certain government programs may provide benefits, but eligibility requirements and available services vary.
Questions to Consider
- Where would I prefer to receive care?
- Who would coordinate my care?
- Would my spouse be financially protected?
- How much of my assets could be used for care?
- Do I want insurance protection?
- What role would my children or family members have?
- Are my legal and healthcare documents current?
- Would my current retirement income continue during a care event?
Long-Term Care Planning Is Family Planning
A long-term care strategy is not only about paying bills. It is about preserving choices, reducing pressure on loved ones, and helping your family understand your wishes before a crisis occurs.
The best time to review long-term care options is generally before a health event limits your choices.
Schedule a consultation to discuss how an extended care need could affect your retirement strategy, your spouse, and your family.
No obligation. Speak directly with a senior planner at National Planning Associates.
- (602) 448-0263
- jay@nationalplanningassociates.com
- 1444 S Belcher Rd #164, Clearwater, FL 33764
- Hours: Monday–Friday, 10am–5pm
What Retirement Question Is Most Important to You?
Tell us what concerns you most about retirement. We will contact you to schedule a conversation and discuss whether our planning process may be helpful.