High cost and limited choices, but insurance that can make the difference as you age.

When you imagine your retirement journey, you likely picture trips to the beach, leisurely days with the grandkids and lots of time for hobbies. A lengthy stay in a nursing home probably isn’t part of that vision. Yet nearly 70% of Americans turning 65 will need some long-term care and support.

“Everyone thinks they’ll be in the 30%, but the numbers say to plan otherwise,” says Beth Ludden, senior vice president of long-term-care product development at Genworth. The costs of long-term care can be shockingly high. The median cost of a home health aide was $5,148 per month in 2021, while a private room in a nursing home was $9,034 per month, according to Genworth. Ludden expects these costs will continue to rise.

While Medicaid can pay for long-term care, it generally only kicks in after you’ve spent down virtually all of your assets. Before then, you typically have three options. “You can either pay for everything yourself, a family member can take care of you, or you can buy long-term-care insurance,” says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.

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Written By: David Rodeck

Published By: www.kiplinger.com