No one likes to think about needing long-term care, like assisted living or a nursing home, but for many, it’s an inevitable part of aging. As a Childfree individual, you’ll need to plan for your own care, and while many people with children face the same reality, having kids doesn’t guarantee they’ll be there for elder care. The costs of long-term care can be steep, but with early planning, you can make sure you have the support you need when the time comes. Here’s what to consider when planning for long-term care.
How Much Will It Cost?
The cost of long-term care can vary greatly depending on the type of care and where you live. Here’s a general breakdown:
- Home care: $5,000 per month (for 44 hours a week of care)
- Assisted living: $4,500 per month
- Nursing home (private room): $9,300 per month
Costs vary depending on location. For instance, Missouri is the most affordable state for nursing homes, with private rooms costing $5,900, while Alaska’s costs are significantly higher at $31,000 per month.
The length of time you’ll need care also varies. On average, men will require 2.2 years of care, while women will need 3.7 years (because women live longer). The earlier you start planning, the more cost-effective it will be.
How to Pay for Long-Term Care?
Unfortunately, regular health insurance doesn’t cover long-term care, and neither does Medicare. While Medicaid can help cover costs, it has strict eligibility requirements based on income and assets, meaning you may need to “spend down” your assets to qualify. Medicaid facilities aren’t always the best options, and there’s also a 5-year “look-back” rule to prevent abuse, which could extend your waiting period if you’ve transferred assets recently.
If you don’t want to rely on Medicaid, saving money and investing it for long-term care is an option—but the sooner you start, the better, so your investments have time to grow and ride out market fluctuations. Your CERTIFIED FINANCIAL PLANNER™ can help you plan for the future if this route is feasible for you.
Long-Term Care Insurance
One of the best solutions for long-term care planning is long-term care insurance, though it can be pricey. Keep in mind that getting this coverage can be difficult if your family has a history of dementia or Alzheimer’s. Women also tend to pay more than men for this insurance. The earlier you purchase a policy (ideally in your 40s), the more affordable it will be, but it will increase in price as you age.
Work the costs of the policy into your annual budget to avoid unexpected expenses later. Some plans even cover home care and a Geriatric Care Manager, a professional who helps coordinate your care. These services are invaluable, so they’re worth considering in your long-term planning.
Opting Out Altogether
Though it’s a difficult and morbid topic, many people in the Childfree community consider opting out of long-term care altogether. Some may choose euthanasia or assisted suicide as a way to avoid the expenses and challenges of long-term care. Laws around this vary by state, and you may need to travel to a jurisdiction where it’s legal. Consult with a lawyer to understand the legal requirements and make sure everything is in place should you choose this option.
Get Professional Help
Planning for long-term care is complex, and it’s important to address it sooner rather than later. Work with a CERTIFIED FINANCIAL PLANNER™ to run the numbers and develop a plan that fits your budget and needs. Whether it’s saving, investing, or opting for insurance, getting professional advice ensures that you’re ready for whatever comes your way in your later years.