Prepare For Long-Term Care (NAPSA)—As Americans live longer, the prospect of becoming a caregiver or needing one is an undeniable reality. In fact, the U.S. Department of Health and HumanServices estimates that 70 percent of adults 65 or older will require some form of long-term care (“LTC”). Despite the clear need, the majority of Americans have not taken proactive steps to address care for themselves or their loved ones—but you don’t have to be among them. Findings from Northwestern Mutual’s 2014 Long-Term Care Study revealed that even though three-quarters of individuals agreed that planning is important as longevity increases, just a fraction have spoken to family members about their wishes or discussed their own preferences. Of those who have considered LTC planning, the majority expect to rely on personal savings, which may be unrealistic, as a private room in a U.S. assisted living facility or nursing home can average $38,000 and $90,000 per year, respectively, according to data from Northwestern Mutual’s Cost of Long-Term Care Study. Moreover, since AARPresearch indi- cates that 87 percent of Americans rely on unpaid or informal caregivers, it is not surprising that more than half of future caregivers in Northwestern Mutual’s Long-Term Care Study believe that caregiving will affect their budgets and retirement savings. According to Steve Sperka, vice president of long-term care at Northwestern Mutual, the significant financial and lifestyle implications of caregiving should elevate planning for LTC to a key priority. “Our new study confirms what we have heard firsthand from clients—that fulfilling care- giving obligations can takea serious economic and emotionaltoll on families,” said Sperka. “Caregivers, particularly members of the Sandwich Generation simultaneously providing for young chil- It’s a good idea for a family to plan for long-term care. dren and elderly relatives, are sacrificing family time and career opportunities while in their pro- fessional prime.” The good newsis that it is possible to take control of your potential long-term care needs and help ensureclarity for the future in the event of an unexpected illness or condition. To protect income and assets and mitigate the stress and uncertainty that accompany difficult long-term care events, Sperka suggests the following: *Recognize that you have options. While it is optimal to get a jump start on long-term care planning,there are a rangeof considerations at various life stages that can be integrated into your financial security planning. *Have a candid conversation. Long-term care is a challenging topic but understanding your family member’s wishes and expectations for care as well as communicating your own is the key to building a sound retirement plan. *Talk to a financial professional. Do not underestimate the value of expert guidance in navigating complex scenarios and tailoring a strategy that will align with your individual goals, needs and resources. To learn more about long-term care costs and options, including a Long-Term Care Cost Calculator, visit www.nm.com.
