Close the Gap

You have a strategy for your retirement...but what will happen if you experience a sudden, drastic difference between your income and your expenses?

A chronic health condition requiring long-term care (LTC) could force expenses you're not prepared to pay. Even adults who don't need LTC typically require some assistance as they age.

How could these facts impact your future?

• 70 percent of all adults age 65 and up need LTC services at home, in an assisted living facility or in a nursing home.¹
• People typically need LTC due to chronic conditions like diabetes and high blood pressure.²
• Alzheimer's disease and dementia frequently require LTC. Today, 1-in-10 people age 65 and older have Alzheimer's dementia in the U.S.; by 2050, a new case will develop every 33 seconds.³
• Individuals with Alzheimer's typically live 8 to 10 years beyond their diagnosis and need LTC or memory care services longer than anticipated.⁴

Planning for retirement is a crucial aspect of financial management, but unforeseen circumstances, especially related to health, can significantly impact one's financial stability. Here's a deeper look into the potential implications:

1. Unforeseen Long-Term Care Expenses:

   • A chronic health condition requiring long-term care (LTC) can lead to unexpected and potentially substantial expenses.
   • Even individuals who may not initially need LTC could require assistance as they age, introducing unforeseen costs.

2. Statistics Highlighting LTC Needs:

   • Statistically, a significant portion of adults aged 65 and above, around 70 percent, may find themselves in need of LTC services. These services can include care at home, in assisted living facilities, or in nursing homes.¹

3. Common Health Conditions Leading to LTC:

   • Chronic conditions such as diabetes and high blood pressure are common triggers for individuals needing long-term care in the future.²

4. Impact of Alzheimer's and Dementia:

   • Alzheimer's disease and dementia, prevalent among the aging population, are major contributors to the need for LTC.
   • Presently, 1-in-10 individuals aged 65 and older in the U.S. have Alzheimer's dementia, with projections indicating a new case developing every 33 seconds by 2050.³

5. Extended Duration of Care for Alzheimer's Patients:

   • Individuals diagnosed with Alzheimer's typically live 8 to 10 years beyond their diagnosis.⁴
   • This extended period often necessitates LTC or memory care services for a longer duration than initially anticipated, placing additional strain on financial resources.

In light of these facts, it becomes evident that incorporating potential long-term care expenses into retirement planning is essential. Adequate financial preparation and exploring options such as long-term care insurance can help mitigate the financial challenges associated with unexpected health-related costs in retirement.

1. "How Much Care Will You Need?" LongTermCare.gov. U.S. Department of Health and Human Services. 1. https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html. Web. 21 February 2017.2. "Who Needs Care?" LongTermCare.gov. U.S. Department of Health and Human Services.

2. https://longtermcare.acl.gov/the-basics/who-needs-care.html. Web. 21 February 2017.3. 2018 Alzheimer's Disease Facts and Figures. Alzheimer's Association.

3. https://alz.org/alzheimers-dementia/facts-figures. Web. 2018.

4. "About Alzheimer's Disease," Alzheimer's Foundation of America.  http://www.alzfdn.org/AboutAlzheimers/lifeexpectancy.html. Web. 28 January 2016.

5. Lifetime coverage is optional and at an additional cost.

Protecting Your Retirement Income

Step by Step Guide to Receiving LTC