Contact

News & Insights

Retirement Planning for Long-Term Care

It can happen to anyone

Think it won’t happen to you? Some of the most impregnable seeming public figures have found themselves needing long-term care in recent years:

  • Muhammad Ali
  • Michael J Fox
  • Michael Schumacher
  • Ronald Reagan
  • Christopher Reeve
  • Montell Williams
  • Margaret Thatcher

This is not to say that it will happen to you, but if it can happen to the most famous, the most youthful, the fastest, strongest, the most powerful and the most heroic, it can happen to anybody. This illustrates why the possibility of needing long-term care should always be factored into a person’s retirement planning, regardless of who they are.

Even basic health care costs are expensive

According to Health View Services, a Massachusetts-based company which examines retirement health care cost data for financial advisers, rising inflation means that a couple retiring towards the end of 2018 at age 65 will be spending $11.752 on yearly medical expenses. In twenty years time projections suggest they will be spending $31,966 annually.* And this figure doesn’t even take into consideration costs for long term care which could make this figure increase exponentially.

Those who are retiring early have even more to plan for as although they are eligible for Social Security from 62, they must wait a further three years for Medicare enrolment, which is anyhow unlikely to cover all prescription costs.

You have options

Of course, caring for your health in the here and now is great option – but although doing so is going to reduce the risk of premature decline, eating well, exercising and leading a healthy lifestyle are no guarantees against needing long-term care.

There are various financial solutions available, from insurance products to investment portfolios to health savings accounts. So, unless you want to become dependent on the state and/or your children, it is best to plan in advance for all contingencies. This is why you should sit down with your wealth manager so the possibility of needing long-term care can be discussed and built into your retirement planning.

Retirement Planning with Blacktower in the US

Your retirement planning will determine just how much freedom, flexibility and wealth you will have in your sunset years. Blacktower in the US offers wealth management services for expats who want to ensure that they choose the right strategy for their goals.

Contact us today to discuss your wealth planning needs.

* money.com

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Understanding Social Security When Retiring Outside of the United States

Understanding and structuring retirement and pension plans in the United States is a difficult and complex task even at the best of times.

In fact, it is little wonder that so few British expats are able to make sense of retirement planning in the US when even US citizens struggle to do the same without anything like the same level of cross-border tax and income reporting obligations.

Things can get even more complicated in the event that as an expat you decide to eventually retire outside of the US but have built up some eligibility for US Social Security benefits; what, ask many expat wealth management clients, are your rights and responsibilities in such a situation?

Read More

Around Half of All Savers Face Retirement Income Shortfall

How you choose to manage your retirement savings is one of the biggest decisions you will ever make. Whatever retirement planning strategy you put in place will not only play a key part in your financial future, it may also decide the future of your spouse or partner as well as your beneficiaries and their dependents.

But this question is one that is too frequently overlooked. New data from the U.S. Federal Reserve’s Survey of Consumer Finances has revealed that around half of all working-age households believe they will be unable to enjoy their current level of lifestyle once they reach retirement.

This would indicate that there is a crisis brewing. Life expectancy is rising concurrently with the demise of the kinds of generous pension plans available in the late twentieth century and, in the absence of state-level solutions, it is now more important than ever before for retirement savers to act in order to stave off the possibility of financial hardship later in life.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: