by Jeremy A. Wechsler, Esq.
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“Long term care” is the last thing most of us want to talk or hear about. You may have experienced caring for someone, or fear your own care needs in the future. Every last person wants to avoid a dreadful stay at a nursing home, and increasingly it seems that we can find ways to age in place, whether due to health care advancements, technology and additions/modifications to our homes.
Morningstar.com last came out with their report entitled “100 Must-Know Statistics About Long-Term Care” in 2023, and I imagine statistics published in the coming years will show a rapidly changing long-term care landscape. With a huge number of our population turning 65 daily, long-term care needs will only increase.
The question on most of our minds: What are the odds that I will need a nursing home? The answer: 70% of people turning 65 will develop a severe long-term care need in their lifetime. But only 15% of people turning 65 will need to spend more than two years in a nursing home.
It is clear that for those who will need care, relatively few will require a skilled nursing home for over two years. That is good news for the general population, but the chances of needing nursing care is still high—after all, 15% means approximately a 1 in 7 chance. Look around, and you probably know someone over the years who has needed that round-the-clock nursing care later in life.
Furthermore, the statistics of needing more specialized care only grow with age. By the time you turn 85, the chances of needing care greatly increase. Take a look at these dementia statistics: 5% of Americans aged 65-74 have dementia; 13.1% of Americans aged 75-84 have it; and 33% of Americans aged 85+ have it. Dementia and Alzheimer’s are the primary reasons for entering a nursing home, followed by a fall. You have a high chance of needing a nursing home when you have both physical and cognitive impairments.
Women generally live longer, so it is not surprising that they make up the majority of nursing home residents, clocking in at over two-thirds, 67.9%. It is great to live longer, but the odds of needing care will only increase each year.
Ask yourself these questions:
- Do you have a long-term care plan?
- Does that plan include insurance? Does that plan include gifting or use of certain types of trusts?
- Do you have a plan to age in place, and the people around you to do so?
- Will long-term care leave your wealth greatly diminished or completely gutted?
- How does the possibility of needing long-term care weigh on the legacy you wish to leave to your family and loved ones?
At Franklin Retirement Solutions, part of the puzzle pieces that we help our clients with is health care planning and legacy planning. Have questions about how your retirement looks in terms of long-term care? Get in touch with us.