NEWSLETTER
The United States is in a financial retirement crisis. It is estimated that one in five Americans 50 or more has no retirement savings, by AARP. And many retirees end up largely depending on the benefits of Social Security in the absence of other income.
Part of the reason for this savings crisis is reduced to erroneous concepts about retirement.
It is natural that today's workers assume that their life costs will fall substantially once their careers come to an end. But many retirees end up needing more income from those expected.
Related: Suze Orman issues warning about common retiree expenses
A recent period of unbridled inflation has not helped things. Since 2021, retirees have learned in the difficult way that it is important to plan the unexpected.
But while it may be too late for current retirees to build cash reserves and establish different contingency plans, younger Americans who are still working have a great opportunity to make their part of savings and planning. And there is a specific expense Guru Financial Suze Orman warns that everyone should think.
Suze Orman issues warning about common but forgotten expenses
Many workers know how to plan future medical care costs. Fidelity estimates that the typical 65 -year -old player will need $ 165,000 to cover his medical care needs through retirement.
But that estimate does not include help with daily life activities. And Orman insists that Americans need to better plan that expense, especially among those who may not have incorporated caregivers to resort.
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As Orman says, “as we age, it is natural (if not inevitable) that many things we do for ourselves today we can need help later in life.”
Orman highlights some details, including kitchen, cleaning, bathroom and, in general, approaches the house.
The problem is that many people could assume that helping with daily life is a Cost of Medicare. But Medicare will only pay the bill to doctor matters. This means that although he could pay the rehabilitation after surgery or injury, he will not pay non -medical assistance or custody care.
In other words, Medicare does not consider help with the aging of a covered expense. But those who do not have a built -in caregiver to help with daily life activities can be in label shock.
Genworth puts the average cost of a full -time home health assistant at $ 77,792 per year.
Suze Orman says that a particular group should prepare for long -term attention costs
Although Orman insists that all Americans need to establish a long -term care plan, women must be especially attentive.
“Women have a higher risk,” she says. “The 52% probability of needing great attention is decomposed to 46% for men and 56% for women.” And reason is reduced to the trend of women to live longer than their male counterparts.
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“Many wives/female couples are those that take care of a husband/male couple,” says Orman. “However, if the husband dies first, who will take care of the wife?”
Orman says that in their experience, most older people with care needs depend on the family. But it is not a solution with which everyone can count.
In addition, care can be a burden for loved ones. So, although they may be willing to intensify, Orman warns Americans who may not want to put family members in that situation.
More about Suze Orman
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For this reason, Orman says that everyone should do everything possible to save for long -term care needs. And also encourages Americans to analyze long -term care insurance.
A long -term care policy could cover some of the associated costs not only with a health assistant, but also with other needs that may arise, such as assisted life.
For many people, the optimal moment to request long -term attention insurance is during the 50 years. At this stage, they are more likely to obtain affordable rates. But those who buy long -term care insurance, ultimately, will need to achieve balance between qualifying health -based discounts at a younger age instead of paying those premiums for longer.
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