Ian Oliver Mausner has been in the financial management business for more than three decades, so he has counseled countless clients over the years. Clearly, retirement planning is going to be a big part of any long term financial plan. When you think about retirement, you probably envision the active years that will be among the best years of your life. You will have the time to indulge your love of leisure activities like golf, tennis, fishing, or whatever you personally enjoy. Plus, many people will do a lot of traveling during these years so that they can cross things off of their bucket lists. Successful retirees also have the ability to spend quality time with their families, and they can often do nice things for their grandchildren.
This typical retirement vision is only part of the picture, and financial advisors like Ian Mausner often inform clients about the next stage of life. According to the Social Security Administration, once you reach the age of sixty-seven, it is likely that you will live into your mid-eighties. The United States Department of Health and Human Services maintains a website called LongTermCare.gov. According to their research, seventy percent of all senior citizens will someday need help with their activities of daily living. Many will reside in long-term care communities or nursing homes.
Most people will qualify for Medicare coverage as a source of health insurance when they attain senior citizen status. It would be natural to assume that Medicare will pay for long-term care, but in fact, it does not. If you need help with your day-to-day needs, that type of care is considered to be custodial care and Medicare will not pay for it. Paying for long-term care out-of-pocket can get very expensive. The national average charge for a single year in a nursing home is over $90,000, and in some areas of the country, the costs are considerably higher. For example, consider nursing home costs in the greater San Francisco area.
According to a survey that has been conducted by Genworth Financial, the median annual charge for a private room in a nursing home in the Bay area is over $180,000. One out of every ten nursing home residents will require the care for at least five years. The average length of stay is over two years.
When you combine all of these statistics, you can see that long term care expenses can consume a great deal of money toward the end of your life. This can all be doubled if you are married. If you consult with a financial adviser like Ian Mausner, you can take the necessary steps to brace yourself for potential nursing home or assisted living community costs.