Long Term Retirement Planning

The number of Americans needing long term care is expected to double in the next 30 years, putting a increased financial and emotional burden on many families. This burden will be felt the most by Baby Boomers who are facing retirement themselves, while also caring for elderly parents and maintaining relationships with grown children of their own.

As it is becoming less common for children to assume the sole caregiving responsibility for their parents, it is even more crucial to be proactive and focus on long term retirement planning at an earlier age.

So what are the steps to successfully plan for long term retirement?

1. Location Matters

As a healthy, recent retiree, or an adult planning for retirement, it is important to think about where you are living. If you have a large, expensive house in a largely car-dependent city or neighborhood, you might want to consider downsizing into an apartment, condo, or small home that is in a pedestrian friendly location near your family and friends. Making the change now will allow you to limit unnecessary expenses, and ensure that you will be able to age at home as long as possible.

According to a UBS survey, 89 percent of participants said that while they would prefer to stay in their current home, they still find moving to a smaller home vastly more preferable than moving into a Nursing Home or Assisted Living Facility.

2. Get Long Term Care Insurance

If aging in your home is what you want, an important step in your retirement planning should be finding an insurance policy that covers that kind of care. It is never too early to be searching for a Long Term Care Insurance policy that suits your needs, as the younger and healthier you are, the cheaper the policies are.

3. Consider The Tradeoffs

It is natural for a parent or grandparent to want to help their children and grandchildren with money - mortgages, college tuition, etc. However, most of us are not wealthy enough to not have to make tough financial decisions sometimes. That same money could be put away in preparation for your long term care needs, which would prevent financial hardships and relationship strains on your children later on.

If you do end up needing to rely on your children for care later in life, it could be a source of conflict between siblings on how to split care responsibilities and payments.

4. Talk To An Expert

Talking to a professional with your entire family present is an important step for long term retirement planning. It allows you to determine what is important to you, and how to manage your retirement and care needs so that the whole family is on the same page, preventing strife later on.

Find a financial advisor or lawyer who specializes in wealth transfer and estate planning, and who is willing to build  relationship with you so they can adapt as your needs change over time.

Once you have determined that either you or your parents need assistance to continue to age at home, one of our Client Care Liaisons can set up a free consultation to determine your in-home care needs, and refer a care provider that is right for your family. Contact us Toll Free at 1-844-505-0004.