Long-Term Care: Biggest Retirement Income Risk

November 9, 2015 by admin

For current retirees and those nearing retirement, healthcare costs are expected to pose the single greatest risk to income in retirement. A recent study reports a 65-year-old healthy couple retiring in 2015 can expect to pay an average of $394,954 in total healthcare costs in retirement. For a 55-year-old couple retiring in 10 years, total lifetime healthcare costs are projected to rise to $463,849 on average.*

When custodial care is factored into the heath care equation, costs can quickly skyrocket well above average projections. When planning for your healthcare needs in retirement, it’s important to keep in mind that Medicare, Medicare supplement plans and private medical insurance do not cover long-term in-home maintenance or nursing care.

Long-Term Care (LTC) insurance was developed to fill this void and help retirees manage the impact of rising healthcare costs. The right policy and coverage can help protect the income you and your spouse rely upon in retirement to maintain your lifestyle as well as your ability to choose the type of care you prefer –when and if you need it. If you’re considering LTC insurance, now is the time to learn more. Typically, the younger you are when you purchase the policy, the lower the monthly premium.

If you’re wondering whether LTC insurance or another strategy may be right for you, give us a call at (714) 634-8051. We’ll talk about the different alternatives available to help you prevent a lifetime of assets from falling short when you need them most.

*HealthView Services: 2015 Retirement Health Care Costs Data Report. Projections assume: life expectancy of 87 for the male, 89 for the female, and an MAGI income level below $170,000; Medicare Parts B and D coverage and a supplemental insurance policy; insurance premiums for medical, dental, vision; co-pays; and out-of-pocket expenses.