College tuition. Retirement. Recession.
You have your own financial woes to think about, but now you have to worry about the possibility of helping finance your aging loved one’s long term care as well. At a time when the boomer generation is preparing for their own retirement, 20 percent of adult North Carolinians now find themselves personal and/or financial care providers to an adult parent for friend, possibly compromising their own nest eggs.
In a recent survey we cited, AARP estimates that family caregivers provided the equivalent of $450 billion worth of care to their adult parents, with women typically the family members who assist more in the caregiving responsibilities.
In addition to full time jobs and running their own households, caregivers spend an average of 20 hours per week caring for their loved ones. MetLife estimates those women who take off time from their jobs, take a leave of absence, or resign their positions all together, lose an average of $324,044 in lifetime wages, retirement fund and Social Security benefits.
The time is now – right now before a crisis happens that leaves you unprepared – to put a financial plan into place for the long-term care of your aging parents without placing a heavy burden on your own finances.
Here are some tips to start the planning process.
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Talk to you parents.
Assess their financial situation and any preparations they’ve already made. Unfortunately many seniors have exhausted their retirement and the national drain on Social Security and Medicare has left individuals to personally pay for much of their long term health care.
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Do your homework.
Get health care options and the costs for each one. Stay at home, assisted living, nursing home.
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Investigate if long-term care insurance is the right option.
Long term care insurance isn’t always right for everybody, but don’t rule it out. Be a very careful shopper and make sure the terms and conditions are clear, that the policy offers extended coverage that includes assisted living residences and nursing home facilities. Financial experts suggest the monthly premium should not be more than five percent of your monthly income.
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Consider all financing options.
Medicare does not cover long-term care, and in most cases, it does not cover home health care. Medicaid covers various types of care and services for those who fall below the poverty line, but many states are cutting back on Medicaid benefits. One financial resource that most often gets overlooked is VA benefits. If your loved one is a veteran or spouse of a veteran, the VA offers The Aid and Attendance (A&A) Pension that covers home health care like assistance in eating, bathing, dressing, or taking care of the needs of nature. It also includes care in assisted or independent living facilities.
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Consult a professional.
Whether an attorney specializing in elder law, a financial planner, a certified senior advisor, or all of the above, get advice on long term care financial options, as well as advice on protecting your own savings.
Your Next Move can help you locate the perfect senior housing for your aging loved one. Our team of relocation specialists are also with you through every step of the transition process including downsizing, estate sales, moving household goods, and home sale.
This blog post is brought to you by the team at Your Next Move. If you are interested in further information you may contact us below. LIKE us on Facebook and follow us on Twitter to get the most current communication on the subject of senior relocation. Please join our mailing list.
Your Next Move, Easing Your Senior Transition
Julie Kopetsky, President
www.yournextmovenc.com
919-601-8203
Julie.kopetsky@yournextmovenc.com