Boomers are not happy campers when it comes to the cost of health care in retirement, and they have cause.
Genworth Financial’s annual study on the cost of long-term care highlights the way that costs have continued to rise. The study’s figures for the most expensive states in which to receive care certainly give weight to boomer fears.
An Insured Retirement Institute report has also found that boomers are the least confident they’ve been in five years about having enough money to get through retirement; one of the expenses causing the most worry is health care.
Fully 81% of boomers don’t feel financially prepared to cope with LTC needs, according to IRI. In addition, 28% are looking to postpone retirement until age 70 or later, because they don’t believe they have enough money to deal with the expenses, including health care, that retirement will bring.
Genworth’s study points out that LTC costs in other ways, too. It reports that 46% of unpaid family caregivers for those who remain at home end up footing a bill of more than $5,000 annually for a myriad of expenses, from last-minute grocery purchases to putting in grab bars in the shower for a loved one. Then there are the hefty demands on a caregiver’s time and attention, which can negatively affect everything from her job to her health.
LTC is expensive; no way around that. Since Genworth’s study provides insights on how much the cost varies from state to state, perhaps some people might want to contemplate relaocating to a state where care is more affordable — and there is a tremendous difference among states.
(Check out 15 Cheapest States for Long-Term Care Costs: 2015 on ThinkAdvisor.)
According to the senior living referral service A Place for Mom, prices for all types of senior living, including independent living facilities, hit record highs in 2014 — not a reassuring trend. In addition, facilities providing “memory care” (care for those with Alzheimer’s disease and other forms of dementia) and assisted living are increasing in cost in the West and Midwest faster than in other parts of the country.
For the 12th year, Genworth’s Cost of Care Survey, conducted by CareScout, provides not just the data, but includes a mobile app on Genworth’s website and an interactive map. The data, from more than 47,000 provider survey outreaches, comes from 440 regions across the country, covering all 50 states and Washington, D.C. Also included are potential cost growth rates, as well as a look at how expenses in each category have risen over the past 5 years.
Keep reading for the 15 most expensive states for long-term care:
Average Annual Cost: $55,338
Adult day care: $23,010
Licensed home care: $49,764
Assisted living: $46,560
Nursing home (private room): $102,018
Average Annual Cost: $55,547
Adult day care: $20,540
Licensed home care: $44,616
Assisted living: $46,800
Nursing home (private room): $110,230
13. North Dakota
Average Annual Cost: $55,805
Adult day care:$19,562
Licensed home care: $59,854
Assisted living: $38,865
Nursing home (private room): $104,938
Average Annual Cost: $58,196
Adult day care: $17,563
Licensed home care: $54,088
Assisted living: $55,500
Nursing home (private room): $105,631
Average Annual Cost: $58,386
Adult day care: $32,136
Licensed home care: $48,048
Assisted living: $48,240
Nursing home (private room): $105,120
10. Rhode Island
Average Annual Cost: $59,518
Adult day care: $17,290
Licensed home care: $53,768
Assisted living: $63,900
Nursing home (private room): $103,113
Average Annual Cost: $60,923
Adult day care: $28,080
Licensed home care: $50,336
Assisted living: $57,600
Nursing home (private room): $107,675