New York and the Future Cost of Care
There are two things that a New Yorker can do at the moment. First, he can look up the economy of a prospective retirement destination or he can opt for the second thing which is to prepare for the very high New York long term care costs.
If you plan to grow old in New York you need to have a financial plan because without one you risk losing all of your hard earned money and other assets to this state’s very expensive long term care (LTC) services.
Right now, families who have loved ones receiving care in New York nursing homes are forking out $125,322 annually on average. If you only have an annual income of $75,000, how in the world can you afford to stay in this kind of long term care (LTC) facility in case you wind up needing it in the future?
Of course it’s easy for you to cross out nursing home care from your LTC plan but you can never be so sure you won’t need it, right? After what the U.S Department of Health and Human Services said about 40% of Americans having big chances of entering a nursing home, it’s not a good idea to be complacent. If you choose to be, just make sure that you won’t blame the government afterwards when you find yourself on the receiving end of mediocre nursing home services.
New York Long Term Care Costs
America’s LTC costs are expected to increase fourfold in 2030 according to financial planners but if the cost of care in your place is currently unaffordable already, how else can it be affordable 18 years from now?
In Brooklyn, for instance, nursing home residents are currently paying out $137,900 annually but taking into account the annual 5% inflation, they’ll probably be paying close to $500,000 before LTC costs quadruple in 2030.
While residents of other states are preparing for the day LTC costs to reach an all-time high of half a million, New Yorkers are gunning for $2,000,000 as this is the projected annual cost for a nursing home in their place 18 years down the road.
People will also see a rapid increase in the rates of home health care services. As a matter of fact, as early as now some residents in New York can already feel the painful costs of in-home care. In Buffalo, families of in-home care recipients are spending an average of $28 per hour for a home health aide whose job is to provide an elderly or disabled individual assistance with their activities of daily living (ADLs) such as eating, bathing, dressing, and use of the toilet among others.
If you plan to grow old in New York without a clear LTC plan that will support you financially in case you would end up needing care someday, be ready turn over your estate to the government because you won’t manage to keep it.
Rich New Yorkers can self-insure, poor ones have Medicaid, but the middle class need to plan because their money is nowhere near enough for New York long term care costs… even if one works past the age of 65.
Processing your request, Please wait....
