While you may hope to remain healthy for a long time as you age, there is no way of knowing what may happen in the future. Some older adults eventually need to move into nursing home facilities. When they do, they can expect to incur major expenses as a result.
A shared room in a Florida nursing home can cost around $90,000 a year on average, and those who want a private room can anticipate paying at least $100,000 a year in most cases. What are some of the ways that older adults can cover the major costs associated with nursing home living?
Long-term care insurance
Those who started planning for the future while still in the prime of their careers may have long-term care insurance that will pay for their support needs. However, those who are already past the age of retirement will often find that such plans are not cost-effective because their premiums are so high.
Personal savings
Those who set aside a significant amount of money throughout their working lives can sometimes cover nursing home care costs using nothing but their retirement savings. However, the longer someone stays in a nursing home, the more likely they are to eventually run out of resources.
Medicaid
Older adults can qualify for Medicaid coverage when they no longer have sufficient personal resources for income to cover their own care costs. Advanced planning is often crucial for those who want to qualify for Medicaid, as the state will look at 60 months of financial transfers before approving someone for benefits.
Those preparing for retirement or starting to think about their long-term care needs may benefit from reviewing their circumstances and taking certain planning steps to ensure their access to support as they age.
