When you envision retirement, you probably think about the spare time that you will have to enjoy all the things that you have been putting on the back burner throughout your working career. As you are devising a retirement plan, you may be thinking about travel, leisure activities, and the things that you will be able to do for your family.
This is well and good, and you should certainly do everything possible to prepare yourself for an enjoyable retirement. At the same time, you may not be fully aware of some expenses that can make a very big difference. Let’s look at three huge factors that you should take into consideration when you are putting your plan together.
Medicare Won’t Pay for Everything
You may be under the impression that you really don’t have to worry about the health care expenses that you will incur when you attain senior citizen status, because you will be qualified for Medicare coverage. This program will certainly help with things that are covered, but you should be aware of the fact that there are out-of-pocket expenses that can be relatively significant.
In addition to the co-payments, deductibles, and monthly premiums, there is a very big hole in the coverage. The Medicare program will not pay for long-term care. If you ever need help with your activities of daily living, you cannot look toward Medicare for financial assistance.
Most Seniors Will Need Long-Term Care
If you are not particularly concerned because you are under the impression that you will probably never need long-term care, you should understand the facts. There is a very useful website that is maintained by the United States Department of Health and Human Services called longtermcare.gov.
According to the site, seven out of every 10 senior citizens will someday need help with their activities of daily living. In fact, it is likely that you will require long-term care at some point in time if you are fortunate enough to obtain senior citizen status.
Long-Term Care Is Very Expensive
Getting out a pen to write a check to pay for nursing home care can be a rather disturbing experience if you want to be able to leave behind a meaningful legacy to your loved ones after you are gone. Here in Long Island, a year in a nursing home can cost well in excess of $100,000, and people often require multiple years of care.
Explore Solutions
If these facts have gotten your attention, we have some good news to report: there are solutions that can be implemented to protect your assets from devastating nursing home costs. If you would like to explore them, contact us through this page to set up a consultation: Smithtown NY Elder Law Attorneys.
Mark S. Eghrari, Estate Planning Attorney
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