Only one-fifth of Americans over the age of 65 will not require long-term care. Everyone else can anticipate to need it in some form — and a recent study indicated that nearly a fifth of these retirees will have “severe needs” for it. Long-term care supports people with “activities of daily living,” such as bathing and eating, as well as grocery shopping and cooking in some situations. Some people receive this care at home, while others may require admission to a nursing home or assisted living facility.
According to the Center for Retirement Research, 38 percent of older Americans will have “moderate needs” for long-term care services, while 22 percent would have “minimum needs.” The researchers combed through two decades of data from the Health and Retirement Study, accounting for the severity and duration of these long-term care requirements. Check out: How much will long-term care cost you? The needs for long-term care services can vary depending on sociodemographic factors. In comparison to their single counterparts, married couples may be less likely to require this care because they have each other to rely on for everyday assistance.
Race played a role in determining how much long-term care a person will require. A third of black 65-year-old Americans will require long-term care, compared to 23% of Hispanics and 23% of whites. According to the report, approximately 9% of black and 9% of Hispanic seniors will not require this care, compared to 18% of white Americans. Researchers were surprised by this conclusion because Hispanics live far longer than whites or blacks.
See also: Traditional long-term care policies can still be effective. A person’s retirement savings may be eroded if he or she does not plan for long-term care. According to a survey by Genworth, which provides long-term care and life insurance, the average annual cost of long-term care in 2020 was between $93,000 and $106,000 for a nursing home, $55,000 for a home health aide, and about $52,000 for an assisted-living facility. Because Medicare and many other medical insurance policies do not provide adequate coverage for these problems, long-term-care insurance is one option to reduce the costs associated with these services. However, premiums for these insurance vary by age and gender, as well as medical history, and they can be costly. Individuals should consider how much coverage they require and whether the fee is worthwhile if they will never require these services. More information on this type of insurance and how to prepare for it may be found here. Families may also want to talk about how they will handle long-term care needs and who will be the primary caregiver. The researchers stated, “The big concern is whether those who need help will have the means available, either in terms of family or friends to get informal support or adequate cash to pay for professional support.” Read: Now is the time for young people to start preparing for this gloomy possibility.
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