As people live longer, long-term care may become an overwhelming burden on later generations. Our economy can put an emotional strain on families already struggling to stay afloat and educate their children. In these circumstances, caring for aging parents may become a financial drain that breaks the camel’s back.
In 2015, the median cost for a home-health aide for an 8-hour day was more than $44,000 a year, while nursing care in a facility with a private room has a median cost of almost $84,000 a year. As life expectancies increase, so does the duration of long-term care needs, and the financial burden may end up falling on your loved ones after you’ve run through your life savings.
Since the cost of long-term care can rapidly deplete your life’s savings, you should seriously consider including long-term care insurance in your financial plan. Additionally, there’s about a 70% chance you’ll need some type of long-term care after age 65.