Financial Obligations

What fees to expect with senior care

Planning for retirement and eventual long-term care is a daunting task – predicting how much care needed is impossible, but there are many solutions to ensure the future isn’t left to chance.

Upon retirement, life expenses are usually met through a combination of retirement savings, investments and assets, social security and, increasingly prevalent, parttime jobs. As social security becomes less of a “sure thing” and pensions are all but extinct, people of all ages need to plan ahead for retirement and nursing care. Senior living care facilities come with an ever-increasing price tag, but many fail to set financial goals in place for this phase of life – whether they are relying on the hope of help from family, reserving their assets for their children, or simply the victim of their own oversight. Many families are caught in a gap between paying for rising care costs out of pocket and the other end of the spectrum – having a low enough income/asset situation to qualify for government assistance.

However, if one falls in the middle of the spectrum, there are strategies to help a family find quality care without breaking the bank.

The first step is to seek personalized financial advice, regardless of age or situation. If one is starting young, implementing a savings plan or investing in long-term care insurance could make a huge impact on eventual quality of care and comfort.

If one is seeking help late in the game, consider a professional financial adviser to assist in care options.

“The industry-wide consensus is that unplanned long-term care costs can have the single most devastating impact on someone’s accumulated wealth,” Matt Hudnall, financial adviser at TFG Financial, said.

Financial advisers like Hudnall can structure plans to funnel funds into policies and protected accounts that will ensure coverage for pennies on the thousands of dollars.

“My goal is to help each client achieve a growing degree of financial independence – I can help get finances in order so that comfortable retirement is an option,” he said.

Long-term care insurance policies vary greatly, but most do not cover complete nursing home care. Many insurance policies only pay for about half of that bill. The remainder is usually met through retirement funds, the disbursement of assets and help from family. There are also benefits available to veterans to help offset the cost of senior care, so be sure to explore every possibility for assistance.

Accurately assessing what level of care will be required can prevent the costs associated with moving between several facilities. One option that spans several stages of aging is a continuum of care community. These properties feature independent living, assisted living and nursing home facilities, and provide an integrated system of care that monitors a resident’s health and needs over time. With a comprehensive range of services, continuum of care communities meet various stages of need, and can give a smooth transition if residents need to move to a new phase of care. Entrance into these communities comes at a high cost – the initial fees alone can amount to hundreds of thousands of dollars. There are typically several fee schedule options, and it’s important to go over these contractual agreements with family members and a lawyer to determine which option will be most beneficial in the long run.

When looking into any retirement community, comparing a la carte pricing to an all-inclusive package can potentially save money, especially if the resident will be near family. This “menu” of services makes it possible to choose what the resident needs and gives the family the option of shouldering some tasks themselves, like laundry or regular transport to appointments, effectively trimming monthly costs.

Creating a plan for the financial future changes the landscape of retirement and long-term care; no matter the age or situation, there are options and a plan that will provide a home and care.

–Kayleigh Plette

Do your research:

retirement options range greatly in independence and assistance levels; whether maintaining total self-sufficient status, or making the move to a retirement community, assisted living situation or a long-term care facility, there is a perfect fit for every level of need.