The High Cost of Aging: 10 Reasons You Need a Long-Term Health Plan

Did you know the average senior paid $6,668 in out-of-pocket healthcare expenses in 2020, according to the Bureau of Labor Statistics? This year, Fidelity Investments estimated that an average retired couple may need to cover $315,000 in healthcare costs during their lifetime. That’s a $15,000 increase from the company’s estimate in 2021. Aging can be expensive.

If you’re an average 70-year-old, you’ve probably saved a little more than $425,000, judging from Federal Reserve data. The general rule of thumb has been that retirees need a nest egg of $1 million before they retire. But in 2022, only one in six retirees has reached that goal and newer estimates suggest we should have $3 million saved to fund our golden years. Inflation, rising medical costs, and longer lifespans are three reasons driving that recommendation. Are you really prepared for what the future may hold?

Plan for Tomorrow, Get Peace of Mind Today

Fellowship Freedom Plans offer a smart way to plan for your future needs. We recognize that unless you’ve lived it, few people understand the state of caregiving today. We hope the following 10 reasons for choosing Fellowship Freedom Plans will help you lay the foundations for your best future.

1. 1. 1. Medicare doesn’t cover the cost of long-term It only covers the cost of medical care.
   2. 2. Are you among the seven in 10 seniors who believe they’ll need some form of assistance as they age? According to the same 2021 AARP survey, fewer than three in 10 seniors have thought about how they’ll manage to live independent lives with advancing years.
   3. 3. In 2020, 53 million Americans provided unpaid care for a family member, and 24% cared for two or more adult family That’s about one in five adults caring for someone in their family, as reported by AARP. For roughly 47% of caregivers, they’re not only caring for a parent or grandparent, they’re also raising their own family.
   4. 4. Family caregivers spend 26% of their income on related expenses each year. That’s an average of $7,242 per person, according to the Caregiving Out-of-Pocket Costs Study 2021 by AARP Research. And nearly 50% of caregivers curtail their spending, dip into their savings, or cut back on their retirement contributions to cover these out-of-pocket expenses.
   5. 5. Did you know family caregivers are at a higher risk for stress, depression, and health problems that can shorten their life by four to eight years? That’s one of the results of a joint study by Ohio State University and the National Institute on Aging.
   6. 6. The Administration on Aging estimates that families or friends provide 80% of all long-term care to US seniors. Female caregivers, on average, give up $324,044 in salary and benefits to provide that care, according to the MetLife Study of Caregiving Costs to Working Caregivers 2011 report.
   7. 7. Do you know the average cost of home healthcare in New Jersey? The 2021 Genworth Cost of Care Survey reports that it’s $5,710 a month. And even if you only need someone to help with household tasks like cooking or cleaning, the average cost in our state is more than $66,000 per year.
   8. 8. In 2019, the CDC estimated that more than 16 million family members provided 5 billion hours of care for someone with Alzheimer’s Disease or dementia. Of those caregivers, approximately two-thirds are 65 years or older and one in three is a woman.
   9. 9. As a New Jersey resident, are you prepared to pay $77,940 per year for a private, one-bedroom place in assisted living? Will you be ready for the $145,818 annual cost for a private room in a nursing home in New Jersey? Those are the state averages according to Genworth’s 2021 care study.
   10. 10. Fellowship Freedom Plans can show you a smarter way to prepare for your long-term care needs. You can stay in your home, preserve your assets, and become part of the FellowshipLIFE family when you choose one of our plans.

No one wants to think about aging and needing care. And when you need it, it’s too late to plan for it. Call us today at (908) 580-3850 to discuss the advantages of the smarter alternative to long-term care insurance. Let us help you plan for a more secure future.