Coinciding with the baby-boomer generation approaching retirement, we find ourselves in the situation where the cost associated with needing long-term care is the largest unfunded liability in the country today. As the nation ages, the segment of the population at risk of needing long-term care is increasing rapidly – more rapidly than the number of individuals with any private pay solution such as insurance.
Neither Medicare nor private health insurance will pay the majority of the cost of caring for our aging population. Rather, families and individuals usually bear the brunt of long-term care expenses. In most situations, this expense, for which most have not planned, has dire consequences: assets – intended for providing a comfortable retirement income, college education for grandchildren and leaving a legacy – are being depleted at an alarming rate. This in turn creates unnecessary emotional distress on families already stretched financially.
We believe that long-term care planning is a crucial component of retirement and financial planning. A financial plan is only complete when the need for long-term care has been addressed properly. Incorporation of long-term care planning allows the financial plan to unfold in the manner intended.