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[quote=Anonymous][quote=Anonymous]How much should one save for LTC if they don't buy LTC insurance?  $300K?  I guess it makes sense to assume 3 yrs of care?  How do you know what to save?[/quote]

You don't really.  For someone who has quite a bit saved in retirement, it's an easy call -- if you have $5 million in assets and are living off of $200,000 in earnings, you just figure that any additional costs will come out of your capital, and it will take a very long time to spend it down (say you need $250k per year rather than $200k, then even if you need to come up with an additional $150k on top of the $200k, you're still good for longer than you'll live). If you have very little savings, then it's not hard, as you just figure that you'll spend it all and go on Medicaid. It's a harder call for those in the middle -- say you're living pretty well on a pension but don't have a ton of extra assets. I'd do a calculation on what you think you'd really spend out of your budget if you were in assisted living and you're not spending $$ on travel, outside activities, etc.  My guess is that $100,000 per year is a good bet.  Although I understand pp's concern that people will live longer in the future, it is still true that very few people live in extended care for more than 3 years.  I had one relative who did, although that was an unusual situation with someone who got dementia at a relatively early age and was otherwise very healthy.  My other relative with dementia was in care for about three years, and almost none of that involved super expensive medical care.  Personally, I'd mentally bookmark about $300,000 in savings and assume that if the worst happens, the final years will be covered by Medicare. [/quote]

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