As clients start to approach the age for retirement, many worry they won’t survive financially, and they will need long-term care because their health has started to slope downhill. They may not even worry about it for themselves as much as they worry about it for a family member. In the annual Genworth Financial’s study, researchers discovered how long-term care provides almost no comfort on that score, and the costs will continue to elevate at a substantial rate as some of the priciest states in the United States only continue to raise their costs. It becomes enough to make anyone hesitate to retire especially if they haven’t built a significant nest egg. One year in the nursing home can devour every cent they saved.
Out of Pocket Expenses
The caregivers who provide financial assistance for their loved ones will often estimate the expenses as high as $10,000 in out-of-pocket expenses. This may include personal items, household expenses, transportation and even LTC facilities. Many times, the money gets siphoned out of the caregiver’s personal retirement savings or their own daily budget. What are some states that will cost you the most in the United States?
Most Expensive States
#4: New Jersey
As far as cost goes, you can expect an average annual cost to reach as high as $66,418, and if you want to send your loved one to an adult day care, it will cost you as much as $22,100. For licensed home care, it will run as high as $50,336. Meanwhile, you can expect to pay around $59,400 and a private room at the nursing home will cost you an average $133,835 in annual costs. If you live in New Jersey, perhaps you could retire in the, “Land Down Under.” Here the community shares the costs of their aged care services among the commonwealth and the States.
On the whole, the average cost of Hawaii doesn’t differ too much from New Jersey. The average annual cost here will be around $66,533, which is only $100 more than New Jersey. Adult day care only costs $22,100, and for a licensed home care professional, you can expect to pay $57,772. Nursing home with a private room, however, will cost you an average $141,310.
Sometimes referred to as the, “Land of Steady Habits,” you can expect an average annual cost of around $72,836. For an adult day care, it costs less than the other two states and only costs $21,008 annually. Meanwhile, licensed home care will run you an average of $50,336, and assisted living costs $59,400. A nursing home with a private room will cost around $160,600.
In general, Alaska normally experiences highest costs of all the states anyway because of how everything has to be shipped in for it. However, the high cost extended to long-term aged care services is no different from the high cost of healthcare here, and you can expect to pay an average annual cost of around $114,767. Meanwhile, adult day care costs $26,624, and licensed home care will run $59,442. The cost of assisted living can run as high as $81,000, and for a nursing home with a private room, you can expect to pay as much as $292,000.
Luckily, some of these costs will be covered through insurance, but when they’re not covered, that’s when it hurts. Looking at growth on a five-year scale for adult day care, they have had an annual growth rate of 2.53 percent. The only higher cost growth has been nursing home costs over the same period at 3.51 percent. Even when a family member takes the role of the primary caregiver, the cost can still skyrocket, which is why you have to understand the actual medical care costs.