Putting the ‘gold’ in golden years

If you were born between 1944 and 1964, you are a Boomer, and are well aware of how important it is to save for your retirement. Today, the responsibility for retirement saving has shifted from employers to employees, and Social Security provides only a base level of income. Today, it’s up to you to put the “gold” in your “golden years.”

Many Long-Term Care companies survey trends in the marketplace. Among them, Genworth, Inc. did a Financial Reality Check Survey in 2011. 73% of people answering the survey said that they “would not know what to do if they received a call today letting them know that a family member needed long term care.”

The survey also reveals that people value their independence over comfort. For example, did you know that:

  • 8% say they would turn to family for financial support in retirement
  • 11% would move in with family to ensure a comfortable retirement
  • People are 5 times more worried about being a burden than dying, and
  • 78% say they would find it “helpful to talk with a financial professional or specialist about long term care planning” but only 16% have actually had the conversation.*

While it’s tempting to look for the proverbial “pot of gold” at the end of the rainbow and to think or talk about more pleasant things, we all age and most of us end up needing help in some shape or form. It’s not difficult to keep big or small issues from overtaking the golden years! Being prepared with informed decisions based on reviewing long term care protection can mean you’re “gold to go!”

*Genworth, Inc. April 2011 Cost of Care/Financial Reality Check Survey  ~Elise

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Health costs are skyrocketing. You need additional insurance protection.

AARP keeps telling us this fact, and I keep reminding my clients to pay attention: The U.S. health care system is the most expensive in the world.  AARP’s 2009, 2010, 2011 and 2012 studies all point to just how expensive it can be to have healthcare in our country. What’s more frightening is that medical costs continue to rise each year. Dramatically.

Here are the facts according to reports from both AARP and the American Heart Association:

  • Americans spend an average of $8,200 per person on general health care every year (For comparison, Canadians spend just $4,400 annually).
  • A typical hospital stay costs an average of $236 per day in India, $655 per day in France and a whopping $3,949 per day in the U.S. (2011 Comparative Price Report Medical and Hospital Fees released by the International Federation of Health Plans.)
  • The first day of hospital admission averages $1,246, while the cost of discharging a patient averaged $304.
  • An average hospital stay in the U.S. is about $18,000. In the Netherlands and Japan, the 2nd and 3rd most expensive, comparable costs are $4,000 to $6,000 less.
  • U.S. average hospital charge for coronary artery bypass was $122,743 in 2010.
  • Average U.S. cost of hospitalization for a stroke was $87,600 in the same year.

These prices are averages, and don’t reflect costs paid by health insurance. These prices also only reflect hospital costs. Add your surgeon’s bill, your anesthetist, medications, plus quite often, rehabilitation and home health care, and frequently, nursing home care. Even Medicare or a good general supplemental health plan will only pick up 80% of these costs. (That still leaves a substantial amount on the table to be picked up by YOU!)

Don’t let a health crisis deal a critical blow to your finances. Be ready. Advance care planning is a conversation you need to have with a health insurance professional BEFORE anything happens!

~ Elise