A recent study found that most Americans are not realistic when it comes to estimating the amount of money they will need during retirement.
The cost-of-care study, conducted by Genworth Financial, a major long term care insurance provider, estimated that the median cost to hire someone who can assist with household tasks is $3,861 per month, while the cost of a full-time home health aide is $3,813 per month.
The problem is that a majority of current US workers underestimate just how expensive it will be for them to get this assistance in the future when they eventually retire from the workforce. In fact, approximately 80 percent of survey respondents believed that getting in-home help during their Golden Years would be half as expensive as it actually will be.
The reality is that most people will need a little help around the household as they get older and performing daily tasks becomes more and more difficult. Many people end up going to nursing homes or other health care facilities, but this can often be cost prohibitive. Moreover, a lot of individuals who have spent their entire lives taking care of themselves don’t want to lose their independence by changing residences and going to a nursing home.
When it comes to remaining at home and paying for a little assistance with daily tasks, however, the costs can often be overwhelming – especially for someone who is struggling to get by on dwindling retirements savings.
Worse yet, these costs are likely to rise in the future. Since 2011, personal homemaker costs have risen by more than 11 percent, while the costs of home health aides have gone up by nearly seven percent.
It is crucial for younger and middle-aged workers to begin planning ahead for their retirement because that time will come sooner than they think. Moreover, roughly 70 percent of Americans who are 65 years of age or older will likely require long-term care and assistance at some point in their later years. Staying out of debt and placing an emphasis on future savings will go a long way toward ensuring that you have the financial ability to get the care you need after retirement.
To learn more, read the Yahoo.com article, “The Retirement Cost That 80% of Americans Aren’t Ready For.”
If you find yourself dealing with unmanageable debt, an experienced bankruptcy and debt management attorney can help you handle your financial issues and plan for your future. Joel R. Spivack is a skilled, knowledgeable bankruptcy attorney who can fill you in on your legal options. Contact Mr. Spivack today to schedule a free consultation.
