Crystal McMahon

Great Life Investing

Aging and Your Finances

Aging and Your Finances

Let's Talk About Aging

If it seems like people around you are getting older and older, you’re not wrong. About 1 in 3 65-year-olds alive today will live until they’re 90 or more, and about 1 in 7 will live to 95 or beyond. Sound surprising? Even more surprising, the number of Centenarians (people over 100) almost doubled in 10 years from 2010 to 2020, and many of them are living active lives. A couple of years ago I asked a group of people who the oldest person alive was that they knew, and out of a group of less than 10, 3 of them said they knew someone who was at least 100. Wow! Because people are living longer, it’s an important time to discuss aging and your finances with a personal financial advisor. 

Thoughtful Planning is Important

Thanks to modern medicine, more and more of us can achieve a very long life, but your later years could become really challenging if medical expenses start eating away at your retirement savings. And unfortunately, the rate of medical bankruptcies is growing almost as fast as our population is aging.
Fortunately, a bit of thoughtful financial planning in your earlier years can help protect your life savings as you get into your later years. For example, even buying a moderate amount of long-term-care insurance could help save your retirement nest egg by paying for the high costs of a few months of rehab after breaking a large bone like a hip.


Without long-term care protection, how long will your retirement money last?

You might not have planned for long-term care yet, but it’s never too late to start. About 60% of people turning 65-year will probably need some long-term care during their lives.*

In Tacoma, assisted living costs about $34,000 a year, in-home care about $37,000 and nursing home care averages $92,000 per year, and at those prices it doesn’t take long to spend down all of your hard-earned savings. 

How can you pay for Long-Term Care?

  • Traditional Long-Term Care Insurance
  • Life Insurance with Chronic Illness Rider
  • Long-Term Care Annuities
  • Pre-Paid Long-Term Care
  • Medicaid (must spend down assets first)

For more ideas on why you should consider aging and your finances and how to plan for a long life (or how to help your loved ones’ plan for a long life), and to talk to a financial consultant give us a call or send us an email.