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How to effectively plan for nursing home costs
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As you age, additional care and costs become inevitable. Even with the greatest medical innovations of today, about seven out of every 10 people will need long-term support and services by the time they reach 65 years old. About 35% of people will need nursing facility care for an average of one year.
But nursing homes can be expensive. According to Genworth, a private room in a nursing home can cost more than $100,000 per year. Moreover, the company suggests that by the year 2031, a private room will cost over $145,000 per year.
Sure, you may have set up a comfortable retirement, but can your retirement account feasibly absorb more than $100,000 per year in specialized care costs? How do you effectively plan for such an expense?
Buy long-term care insurance now to help you cover the high and growing cost of nursing homes.
How to effectively plan for nursing home costs
There’s a good chance that you’ll need nursing home care at some point in your life. Here’s how to plan for that expense.
Determine how much money a nursing home may cost
Start by determining how much money a nursing home might cost you. To do so, think about when you’ll potentially need this care. A good rule of thumb is to plan for care around the time you turn 70.
Genworth offers a cost of care tool that you can use to get an estimate of how much a nursing home might cost in the future. For example, let’s say you expect to need a nursing home in 2035. According to Genworth’s tool, a private room will cost you $163,972 per year, but you may be able to get a semi-private room for about $143,545 per year.
Buy long-term care insurance to make sure you can afford the care you need.
Consider funds you already have available
You’ve worked all your life and chances are that you’ve planned for your retirement. So, you likely have some funds already in place. Consider how much money you have that’s already available to you.
For example, let’s say you qualify for the maximum social security benefit of $3,627 per month and you receive a $2,200 pension payment each month. That means you already receive $5,827 per month or $69,924 per year. That won’t cover the total expenses quoted above but it can certainly help, particularly if you have long-term care insurance to make up the difference.
Purchase a long-term care insurance policy to bridge the gap
“Long-term care insurance can be a great tool to help pay for nursing homes,” says Kelsey Simasko, attorney at Simasko Law in Mount Clemens, Michigan. However, she says you should do your research because “not all policies cover all types of care.”
Follow these steps to compare policies:
- Know how much coverage you need: The average person who needs nursing home care will require about a year of residency. However, it may be wise to plan for two years of care to be sure you have enough coverage. Determine how much coverage you need based on the difference between your cost of care and your retirement income.
- Request at least three quotes: Get quotes from at least three different long-term care insurance providers. When you do, be sure to ask the insurance company’s representative as many questions as you need to build a thorough understanding of the insurance they provide. For example, ask about coverage caps and limits to the types of care covered.
- Compare your options: Compare your options based on what you learned as you requested quotes. Compare the pros and cons of each plan to determine which option fits your needs best.
- Consider riders: Consider adding riders to your policy to customize your coverage. For example, it may be a good idea to add an inflation protection rider to make sure your benefits grow alongside inflation.
Compare your long-term care insurance options now.
The bottom line
There’s a strong chance you’ll spend some time in a nursing home later in life and an even stronger chance that you’ll need some kind of long-term care. Unfortunately, that care can be very expensive. Follow the steps above to make a plan now. This way, you’ll be sure you have access to the care you need in the future.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
CBS Philadelphia
Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.