view transcript

Bob Powell: Long term care costs can vary dramatically according to a recent article in retirement daily penned by financial advisor, Ken Walzer. Indeed the cost of paid long-term care varies by type of service. According to the Genworth 2018 cost of care survey, the median annual costs range from about $18,720 for adult daycare to over a hundred thousand dollars per year for a private nursing home room. Homemaker services average about $48,000 per year and consist of assistance with cooking, cleaning and errands. Home health aides provide hands on personal though not medical care at around $50,000 per year. Adult daycare centers which provides social and support services in a protecting setting may also provide personal care, meals and transportation. These facilities are available in some though not all communities. An assisted living facility can be an alternative to a nursing home. Such facilities provide personal care and some health services. It costs about the same as a home health aid at about $48,000 per year in some states, but can be more cost effective because it can provide 24 hour day coverage rather than 44 hours a week on which the home health aid estimate is based. Many people, however, prefer to stay at home and are willing to pay more for the ability to do so. Nursing home care is the most intensive and expensive type of longterm care, providing round the clock, personal care, room and board supervision, medication therapy and rehabilitation. Long-term care cow costs can also vary by both region and within a given region. And can also vary greatly by provider. Detailed cost data for 440 metro regions is available in the Genworth 2018 cost of care survey. You can use this information for budgeting purposes, but if you prefer a particular facility, you should contact it directly for pricing information.

Long-Term Care Costs Can Vary Dramatically.

How's this for sticker shock. A private nursing home room will cost you $100,375 per year according to the Genworth Cost of Care Survey 2018. But that's just for one year.

The average stay in a nursing home is 835 days, according to the National Care Planning Council. So, that means your private nursing home room will cost you - assuming you need a nursing home - about $233,000 in today's dollars and even more if you factor in a 4% inflation rate.

So, that's the bad news according to a recent article in Retirement Daily by Kenneth Waltzer.

The Cost of Long-Term Care 

The good news is that the cost of other long-term care services, provided you need them, is less. For instance, a semi-private room is $89,297 per year; an assisted living facility is $48,000; a home health aide is $50,336; homemaker services is $48,048; and adult day health care is $18,720.

To be sure, it's hard to plan for something that you might not need. It's even harder when you consider the above costs are national averages and long-term costs vary considerable by region and state. But the odds are not in your favor if you don't plan for long-term costs no matter how variable they might be. Consider: seven out of 10 people will require long-term care in their lifetime, U.S. Department of Health and Human Services.

Advice for Retirement

So, if you're trying to get a handle on planning for long-term care consider a subscription to Retirement Daily, which publishes articles and commentary designed to help everyone plan for and live in retirement. Get more information and sign up for a free trial subscription to TheStreet's Retirement Daily.

Related. Self-Employed? Here's How to Save Up to $62,000 a Year for Retirement

Related. Double Your Annual Retirement Contribution With This Catch-Up Provision

Retirees: How Much Do You Expect to Pay for Long-Term Care?