For many clients, the exposure to long-term care, or LTC, costs remains the wildcard in retirement planning, so estimating those costs is an important element in planning retirement income.
Northwestern recently has used the results of a survey to launch a new Long Term Care Cost Calculator to help advisors and clients better understand their LTC costs.
The company’s Long Term Care Group conducted research that included nearly 7,000 home health-care providers, assisted living facilities and nursing homes. (The full survey report is available online.)
“It is clear that most people simply can’t afford to pay for long-term care by drawing on their retirement nest eggs,” says Terence Holahan, Northwestern Mutual. “Planning for long term care is about protecting both your assets and your lifestyle when you are unable to care for yourself; this new calculator helps educate consumers about the potential cost of a long term care event and how it can vary by age, location and length of time the care is needed.”
These statistics support Holahan’s points:
? About 60 percent of individuals over age 65 will require at least some type of long term care services during their lifetime;