How much are you budgeting for long term or elder care?

[Anonymous]

For those of you who don't have LTC insurance, how much are you including in your retirement budget for assisted living, memory care, or long-term care? My partner and I are trying to budget to have ~$1M remaining at age 90, which could support a few years of LTC for each of us at current rates. But I also wonder - what if one of us has a stroke at 70, and we need 10-20 years of continuing care? Just wondering what other people's assumptions look like.

[Anonymous]

Anonymous wrote:For those of you who don't have LTC insurance, how much are you including in your retirement budget for assisted living, memory care, or long-term care? My partner and I are trying to budget to have ~$1M remaining at age 90, which could support a few years of LTC for each of us at current rates. But I also wonder - what if one of us has a stroke at 70, and we need 10-20 years of continuing care? Just wondering what other people's assumptions look like.

We have 3 ways of thinking about this:
1)We're thinking about doing a small joint QLAC that is deferred for old-age so that the elder care for one spouse doesn't bankrupt the other. Basically to bring it up so that social security + annuity equals very basic expenses.

2)We're planning on putting aside 250k each at retirement that is invested for long-term care through a combination of stock index and t-bills/TIPS.

3) We are doing our planning to leave an inheritance (we put it in the models as a minimum of 500k inflation adjusted) that ostensibly could be tapped if the first two things aren't enough.

So 2 and 3 are kind of like your 'ending with 1 million' but we're instead doing 'setting aside 500k at point of retirement and letting it grow with that investment time frame" and 'ending with 500k extra as a minimum."

[Anonymous]

I don't "budget" LTC per se. Yes, there is always a scenario under which our money will run out, so my kids won't inherit much. This is another reason to fund their 529s to the max to make sure that they get at least something.

[Anonymous]

I anticipate an inheritance from my mom of at least $500k (she's in her mid 80s, lives with my sibling, and has LTC insurance if needed). We don't factor that into our retirement except as LTC. If we don't use it, that will pass to our kids.

My dad, FIL, MIL have all died and none used any kind of LTC.

[Anonymous]

My mom’s assisted living costs just over $9k per month. At a high enough net worth the earnings on interest cover the cost. I’d like to have $2 million invested for when I need assistance. That way I could come close to not having to touch principal so it can be passed on.

[Anonymous]

Our plan is roughly to have enough assets to pay for $15,000 a month in current dollars at retirement. If that’s not enough, we sell the house.

[Anonymous]

Anonymous wrote:Our plan is roughly to have enough assets to pay for $15,000 a month in current dollars at retirement. If that’s not enough, we sell the house.

Is the $15k per person or for the two of you combined?

[Anonymous]

Anonymous wrote:I anticipate an inheritance from my mom of at least $500k (she's in her mid 80s, lives with my sibling, and has LTC insurance if needed). We don't factor that into our retirement except as LTC. If we don't use it, that will pass to our kids.

My dad, FIL, MIL have all died and none used any kind of LTC.

I hope your sibling is getting the bulk of the inheritance

[Anonymous]

I keep a box of ammo in the safe.

[Anonymous]

Anonymous wrote:I keep a box of ammo in the safe.

This. No way I am budgeting for skilled nursing or memory care. I will leave this world before that happens. Why do people think we were ever meant to live that way? Science makes our bodies live longer than they were meant to and left the brain behind.

[Anonymous]

I think people on here are mostly risk adverse and saving way too much for LTC. Their children will love them for to as they will inherit.

Most people spend 2 years max in a LTC facility. Elderly people would be living in the streets en masses if everyone needed 2 million minimum.

My own mother was in a memory care facility and we spent 200k before she died.

Consider that in old age, your average UMC person should have social security and a minimum distribution for retirement. If you’re in a LTC facility you’re not paying for vacations or really anything at all besides the care. You should not have a mortgage by this age or even transportation costs. Your entire income goes to the LTC facility. Even if you have a spouse at home, the home should be paid for and same with a vehicle.

I’d have $250k a person earmarked per person. Chances are great that only one person will need it.

[Anonymous]

Just here to say we just put my mom age 76 in a LTC facility that costs 8k a month. She can afford it for 20 years due to her pension and annuity, but if she needs a higher level of care she will run out of money in 10. She’s saved all her life. She is physically strong but has vascular dementia and needs to be where she is. I don’t know how most people afford this stuff.

[Anonymous]

Sorry to be blunt, but I am not obsessed about it. I really don't care much what happens to me if I am brain dead and can't remember anything or feel. If I have as stroke and my brain is gone, or I get severe dementia, I'd rather be euthanized. If I am mentally sharp but my body isn't working, I'd try to use my assets wisely to get minimum adequate care. I'd prefer to live at home and have a visiting (or live-in) housekeeper to cook and clean or a low wage type of caretaker. I hope I won't need a nurse or a medical professional. If I do.. this means I am severely disabled and my QOL is zero and I might as well get euthanized, although that would be a harder decision.. than being brain dead.

If I fail to accumulate enough or something bad happens and I lose most of what I saved from decades of hard work, then I would work on eliminating assets and being poor. This way you get government assistance and extra medical coverage. I will have to research which state/city pays the most and establish residency there before I become frail.

[Anonymous]

Anonymous wrote:I think people on here are mostly risk adverse and saving way too much for LTC. Their children will love them for to as they will inherit.

Most people spend 2 years max in a LTC facility. Elderly people would be living in the streets en masses if everyone needed 2 million minimum.

My own mother was in a memory care facility and we spent 200k before she died.

Consider that in old age, your average UMC person should have social security and a minimum distribution for retirement. If you’re in a LTC facility you’re not paying for vacations or really anything at all besides the care. You should not have a mortgage by this age or even transportation costs. Your entire income goes to the LTC facility. Even if you have a spouse at home, the home should be paid for and same with a vehicle.

I’d have $250k a person earmarked per person. Chances are great that only one person will need it.

This. People who are that sick don't live long. Is 250/person the entire amount or per year? it's an enormous diff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I keep a box of ammo in the safe.

This. No way I am budgeting for skilled nursing or memory care. I will leave this world before that happens. Why do people think we were ever meant to live that way? Science makes our bodies live longer than they were meant to and left the brain behind.

There is an entire industry and loads of money to be made to prolong the life of elderly with poor outcomes who have very low QOL. It's because there is government paying for a lot of this, and also people with left over money are squeezed out of their assets this way, which creates nice business or a job for others. Ironically we invest so very little into the well being of kids and younger people to have them be more productive longer and healthier and not drain on the system but contributors. We also don't focus on making our workplace palatable for older workers (keeping them occupied and mentally challenged) but without the usual pressure of full time work and expectations/deadlines full time workers have.

In other words, we are doing this backwards. We are forcing people to work full time, get worn out working jobs, raising families, having to invest to just keep their savings, with a carrot dangling at the end that when they are feeling like they want to die we will keep them alive..