Highlights from the Genworth 2015 Cost of Long-Term Care Survey
Eileen St. Pierre, The Everyday Financial Planner
Genworth recently published its 2015 Cost of Care Survey. While the cost of all types of long-term care has steadily risen over the past five years, the cost of care provided at home has not risen as much. Here are some of the key takeaways from this annual cost survey:
Caregiving can take its toll.
You may be fortunate to have family and friends to help take care of you when the need arises. But you need to make sure your caregivers are included in a long-term care financing plan.
- 46% of caregivers spend more than $5,000 a year of their own money.
- 33% spent more than 30 hours a week caregiving.
- 66% of caregivers report care-related distractions such as phone calls and emails while working.
- 60% of caregivers admitted that caregiving duties had a negative effect on their jobs.
Long-term care costs vary widely across the country.
Keep in mind that these numbers are simply average costs. They do not necessarily reflect the quality or supply of care.
Don’t rely on Medicare.
Many people mistakenly believe that Medicare will cover long-term care costs. The truth is that Medicare will only cover skilled care for only a short period of time. Once you reach that cutoff or are no longer expected to recover – whichever comes first – you will have to pay for long-term care.
Visit my Financial Planning for Later in Life page for more information on long-term care and how to incorporate these costs into your retirement plan.