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Major financial concerns for people over the age of 65

One of the major financial concerns for people over the age of 65 is the escalating cost of care. They are afraid that in their last years of life they will lose all of what they spent their entire life saving, and it may not even be enough to pay for the care they want and need

According to data compiled by the Social Security Administration, about one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95.

The average cost of care varies depending on where you live and the type of care you receive.

Below is the average cost of care in the USA based on a report issued by Genworth.

Keep in mind that this does not include personal expenses such as clothes, health insurance premiums, insurance co-pays, dental care, vision care, entertainment and other personal expenses which will make these numbers even higher. This is also the cost for one person. The well spouse still needs a place to live and enough income to cover all of their expenses.

 

 

Type of Care

Annual

average cost

5 year

annual growth

     
Homemaker services $44,616 2%
Home health aide $45,760 1%
Adult day health care $17,904 3%
Assisted living facility $43,200 2%
Nursing home care semi-private room $80,300 4%
Nursing home care private room $91,250 4%
     

 

There is of course, no way to know if the cost of care for you will be below, at or above the average figures. In the case of my mother, the cost of her care for the last four years of her life was over $180,000 per year.

Many seniors cannot handle this expense and are afraid that in their last years of life they will lose all of what they spent their life saving, to the cost care, and it may not even be enough to pay for the care they want and need.

 

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