Considering the Costs: In Home, Assisted or Nursing Care

That can make financial sense considering that the cost of in-home care is rising at a slower pace than assisted living or nursing care, according to a recent Genworth Financial study – 1.7 percent over the past five years, compared to 6.7 percent for assisted living and 4.5 percent for private room nursing care.

At the same time, many states are facing severe budget cuts, and according to the Center on Budget and Policy Priorities, at least 25 states have cut programs for meal deliveries, housekeeping help and programs for family caregivers – the kinds of programs that allow seniors to stay in their homes longer. On average, states spend just 25 percent of their long-term care budgets on home and community-based care, according to a July 21, 2010, article in the New York Times.

Clearly to meet the goal of staying independent as long as possible, retirees need to consider costs for in-home care and how to cover them. Long-term care insurance may be one option, yet a 2009 report from the American Association for Long Term Care Insurance found that many consumers associate long-term care primarily with nursing home care. While nursing home care definitely ranks at the high end of the long-term care cost spectrum, long-term care insurance (LTCI) may also help cover the cost of in-home services from nurses’ aides, home health aides and therapists or services in an assisted living facility.

Health care costs, including long-term care services provided in the home or in an assisted or skilled facility, can greatly impact your retirement finances. A 2009 study from the Center for Retirement Research at Boston College found that 47 percent of middle-income adults and 42 percent of high-income adults are at risk for a lower standard of living in retirement. Those rates would be even higher if they took healthcare and long-term care into account, the center said.

Your retirement plans should include a thorough analysis of potential risks, including the risk of a health condition requiring long-term care for you or your spouse. Call your personal financial advisor, Jordan, at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website at www.JordanDechtman.com to schedule an initial review or update of your retirement plan.

About Jordan Dechtman Wealth Management. Jordan Dechtman Wealth Management is an independent Colorado financial services firm, serving clients since 1984. Jordan Dechtman Wealth Management helps you plan, predict, protect, your future one day at a time.

To learn more about the Jordan Dechtman Wealth Management difference, please contact Jordan Dechtman Wealth Management at 303.741.9772 or www.JordanDechtman.com .
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