The cost of long-term care is one of largest expenses seniors may face as they age. Almost 70% of those over 65 will need LTC during their lifetime, making this a crucial part of any retirement plan.
The cost of assisted living in Colorado ranges from $3,500 to $5,000 per month ($3,850 average). Long-term care averages over $8,500 a month. Combined with annual increases of more than 4%, your retirement savings can be very quickly depleted. Traditional long-term care insurance is the best bang for your buck but is often too expensive for most retirees to pay over the long term. Combined with increasing premiums and the possibility of never using it (use it or lose it), traditional plans are not very popular.
The good news is there are ways to offset some of those costs with proper planning. Linked-benefit plans are gaining popularity and can be an efficient use of retirement assets. Combining long-term care coverage with a life insurance policy or annuity may make sense in your overall retirement plan.
To get your complementary long-term care analysis, click here and put LTC in the subject line.