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The Cost of Care
42% of American workers do not have a retirement strategy (Transamerica Center for Retirement Studies).
Getting prepared now while you are relatively healthy and living independently is the best way to set your strategy and plan for the security and independence you want.
No one has a crystal ball to see into the future. There is no way to know what level or duration of care you might need as you age. What is clear is that costs for care are increasing over time, and Medicare does not provide comprehensive ongoing coverage.
AARP calculated current (2016) and projected (2026) care costs for Pennsylvania and Delaware:
Pennsylvania
- Home Health Aide: $119 a day in 2016 and $160 a day in 2026
- Assisted Living Facility: $118 a day in 2016 and $159 a day in 2026
- Nursing Home: $310 a day in 2016 and $410 a day in 2026
Delaware
- Home Health Aide: $125 a day in 2016 and $168 a day in 2026
- Assisted Living Facility: $176 a day in 2016 and $237 a day in 2026
- Nursing Home: $326 a day in 2016 and $434 a day in 2026
Have you thought about how you will afford care that you may need in the future? Do you know who will provide that care for you?
The Top Choices Available to Cover Costs and Care
- No plan
- Continuing Care Retirement Community
- Long-term care insurance
- Friend Life Care Membership
No Plan
The “no plan” way to cover costs and care is to rely on a family member, partner, or friend as your caregiver. One “price” to this is that being a caregiver can become a burden: Caregivers spend an average of 20 hours a week giving care, and 58 percent provide assistance with intensive needs such as bathing, dressing, and eating, according to the U.S. Department of Health and Human Services.
If you require additional care, you will pay out of pocket for the caregiver or facility and will have to figure out how to coordinate your own care as you go.
Continuing Care Retirement Community (CCRC)
A way to alleviate the caregiver burden is to move to a continuing care retirement community also known as a life plan community. This is a major lifestyle change which many people decide is right for them.
It is also the most expensive of all long-term care options. According to AARP, the required upfront fee to move into a CCRC can be anywhere from $100,000 to $1 million. You will also make ongoing monthly payments ranging from $3,000 to $5,000 and which may increase if your need for care changes. Some of these life plan communities also charge additional fees for things like meal service, transportation, housekeeping, and activities.
Long-term Care Insurance
Long-term care insurance is a financial product. If you hold a comprehensive policy, it can cover home, hospice, respite, assisted living facility, nursing home, or special care facility. Insurance plans can be accessed when requirements are met. These traditional policies, however, do not give the same level of care you get with membership. This is why many people with long-term care policies also join Friends Life Care.
Friends Life Care Membership
And then there is Friends Life Care membership. This option allows you to transfer more financial risk by gaining access to a pool of money and gives you the wellness and care coordination and support that are useful to you now and into the future. Membership in Friends Life Care is a proven way to alleviate the caregiver burden on family or friends should you need care in the future.
Most Friends Life Care members prefer to stay in their homes as they age. Others, however, continue their membership when they move into a CCRC or facility to ensure they receive the level of care that they have come to rely upon.
With the Personal Investment vs. Membership chart and our Benefits Calculator, you will find out more about the value of membership.
Retirement Guide
Planning for retirement comes with a lot of questions. Start asking the right ones with the help of this free retirement guide.
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