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By Pamela D. Wilson, The Care Navigator, CSA, MS, BS/BA, CG
Most parents don't want to burden their children when it comes to care in their later years. Other parents expect their children to care for them. The best way to balance these expectations is to discuss options for long term care long before the care is needed and to make financial plans now to cover needed expenses.
An important consideration is that by the time your parents need care their future life expectancy may be only 2-3 years. At the time parents require care, a significant change in health has usually occurred: a broken hip, a heart condition, etc. The more severe the condition and the level of health the parent was at prior to the change indicates the length of time for recovery or at least stabilization or maintenance.
There are many options for care. For example, parents can live in the home of the children or vice versa. What modifications would need to occur to make this necessary? Adding a separate apartment with a separate entrance? Remodeling a basement? Installing a wheelchair ramp? A walk in shower? If living together is an agreed upon plan, a budget should be established for remodeling costs and money set aside now. Assume costs anywhere from minor modifications of several thousand dollars to an addition costing $40,000 and up.
Other options are the obvious ones: in home care, assisted living, nursing homes and other care centers. Review the costs. The average cost for in home care is $21 per hour; assuming 3 hours per day 7 days a week, this equates to about $1,764 per month or $21,168 per year. The national average monthly rate for assisted living is $2,750 per month or $33,000 per year. A nursing home averages $172 per day or $62,800 per year. The question to ask is where would your parents prefer to live their last years?
Additionally, researching long term care insurance is an option for many children who are able to pay or share premium payments with their parents provided that their parents are still healthy enough to qualify for a policy. Long term care insurance, depending on the policy purchased, can cover costs for adult day care, home care, assisted living and nursing homes. A premium of $800-1600 per year depending on the policy and the age of the individual when purchased appears favorable versus $62,800 for one year in a nursing home.
Many believe that in retirement expenses decrease. For some yes, for others with multiple health complications, expenses increase. There are health insurance premiums, medications, medical supplies, hearing aids, etc. It all adds up. Make plans to discuss long term care planning with your spouse, your parents or your children and reduce worry about the future.
Copyright 2011 Pamela D. Wilson, All Rights Reserved.
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