Three-quarters of Americans will need long-term care, but few are prepared for it, according to a new study.
Americans aren’t readying themselves for the costs of getting old, says Think Advisor in its recent article, "Now You Can Add Long-Term Care to Death and Taxes."
It may be one of the biggest disconnects in the U.S.: The gap between how many Americans will need long-term care versus what people actually think they’ll need. Roughly 70 percent of Americans will need some type of long-term care. However, just 46 percent think they’ll need it, according to a new study that surveyed 2,000 people, to see how prepared Americans were for the realities of long-term care.
Another misconception is the out-of-pocket cost of long-term care. The study found that the actual out-of-pocket cost of long-term care is more than $47,000. However, many Americans think it’s about half that: $25,350.
In addition, $47,000 is the low end of the scale for the yearly cost per stay. While some assisted living costs may be $45,000, semi-private nursing homes are closer to $85,000. Private nursing home care is $97,455, according to the study, which was conducted by Digital Third Coast.
The study was made up of 57.7 percent males and 42.3 percent females, while 56 percent were age 35 and younger, 33 percent were 36 to 55 years old, and 11 percent were 56 and older.
Can you believe 64 percent have nothing saved for long-term care, and 67 percent can’t contribute to a parent’s long-term care? The study found that Americans intend to save about $657 per month for long-term care.
Another issue between reality and perception is the age people think they’ll be when they need any sort of long-term care. Most study participants say it’s 79 years old. However, it’s actually 73 years old, according to the study. Women will require long-term care on average for 3.7 years, and men will need it for about 2.2 years.
People in our country also have worries about putting relatives in long-term care, the study found. For example, 73 percent are concerned about physical/sexual mental abuse. About 41 percent said the cost was more than anticipated, and 48 percent hadn’t expected to put loved ones in long-term care. Only 33 percent actually have had discussions with family about when care is necessary.
Quality of care, cost, and the facility’s proximity to family were the top factors people sought in long-term care facilities.
Reference: Think Advisor (August 6, 2018) "Now You Can Add Long-Term Care to Death and Taxes"
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