Long-Term Care Is A Financial Diagnosis
I am widowed. Most of my friends are widows. A couple are widowers. You might even call us elderly orphans. I’m not wild about the term. I like to think about us like wine. We get better with age. But many of us are basically orphans. No kids. No family close if we need assistance. And as we age we are responsible for our own care.
I’ll bet you have clients who are widows or widowers. Or you are helping your clients plan for the likelihood that they too may join our unwanted designation.
For women long-term care is also a financial diagnosis. Think about it. We live longer. Usually two to three years longer than our men. That assumes we’re the same age. But when the guys are older, gals could be widowed for a long time. Not just two to three years. More like 10 to 15 years.
On average women earn less?
About $0.80 for every $1.00 earned by a male employee. What’s the impact? Less earnings, savings, investments, 401(k) and/or IRA contributions, pensions and Social Security benefits.?
Add to this about 75% of unpaid family caregivers are women – mothers, wives, daughters, sisters, nieces. Unpaid family caregivers can spend 20 to 40 hours a week caring for a family member over an average of four to five years. If working these family caregivers essentially have a second job. About 44% work fewer hours at their paid job and 12% quit entirely.
Women need long-term care insurance?
Women are also at greater risk of needing care themselves. About 66% of home care recipients are women and 70% of nursing home residents are women.
领英推荐
After making less, saving less, quitting or reducing work hours to provide unpaid care to a spouse who eventually dies, we become widowed. We live off less money and benefits with fewer caregiving options. And statistically we are at the highest need for care! It doesn’t necessarily work this way for everyone. But as my friends can attest, it does for many of us.?
No financial plan is complete without a plan for long-term care.
Want to know more? We’ve written numerous blogs on this subject: