In this episode, Wade and Alex discuss the costs and prevalence of long-term care. They explore the probabilities of needing long-term care and the average lengths of care for men and women. They also differentiate between any long-term care needs and paid long-term care needs. The conversation provides insights into the importance of planning for long-term care and highlights the need for realistic expectations and budgeting. This conversation explores the financial implications of long-term care, including the distinction between unpaid and paid care. It highlights the impact of unpaid care on caregivers’ lives and the need for paid care. The discussion also delves into the gender differences in long-term care needs and the higher costs associated with women. The Genworth Cost of Care Study provides insights into the average costs of various long-term care options. The conversation emphasizes the importance of considering inflation and demographic trends when planning for long-term care expenses.
Takeaways
- The probability of needing long-term care is higher for women than men, primarily due to their longer life expectancy.
- On average, men need long-term care for about 2.5 years, while women need it for about 3.6 years.
- About 56% of individuals will likely need to plan for long-term care in their retirement.
- Planning for long-term care should consider both the probability and length of care needed, as well as the potential costs involved. Unpaid care can have a significant financial and personal impact on caregivers, often disrupting their own retirement plans.
- Women tend to have longer long-term care needs and higher costs due to their longer life expectancy and caregiving roles.
- The Genworth Cost of Care Study provides estimates of the average costs of different long-term care options.
- Long-term care expenses are likely to grow faster than the overall inflation rate, making it important to plan for higher costs.
Chapters
00:00 Introduction and Personal Updates
05:12 Probabilities and Length of Long-Term Care Needs
10:32 Probability and Length of Any Long-Term Care Event
18:59 Unpaid Care vs. Paid Care
19:37 The Financial Impact of Unpaid Care
20:23 The Cost of Paid Long-Term Care
21:11 Lower Probability of Needing Paid Care for Longer Durations
22:18 Long-Term Care Needs and Gender
23:08 The Impact of Unpaid Care on Women
24:05 Lifetime Expenditures for Long-Term Care
25:18 Inflation and Long-Term Care Expenses
26:35 Triggers for Long-Term Care Needs
28:18 Gender and Long-Term Care Planning
29:01 Genworth Cost of Care Study
31:05 Inflation Rate for Long-Term Care Expenses
32:02 The Progression of Long-Term Care Needs
33:27 State-by-State Differences in Long-Term Care Costs
38:01 Considering Alternative Care Options
39:46 The Growing Need for Long-Term Care
Links
Watch this episode on YouTube: https://youtu.be/Al65949a4QE?si=ytzB2iW9kTeVuNuI
Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”
