For women today, life can be a balancing act between family, career and personal obligations. At the same time, women often face unique challenges when it comes to managing their finances. One of the key challenges and sadly overlooked by many financial planners is the need to plan for the costs of long term care.
The likelihood of a longer retirement: The life expectancy for U.S. women exceeds that of men by five years — 81.1 years for women vs. 76.1 years for men. Five years is huge especially when you consider that it is a time when a person is most likely to need care.
Planning for longevity: It is essential for women to plan to have an income over and above social security during their later years. Many women will have 20 years or more of retirement. Without substantial wealth, the costs of retirement including long term care costs can be dramatic. I strongly suggests that women speak to a financial planner to make this happen.
A type of long term care insurance that’s growing in popularity is a hybrid insurance policy that combines a traditional death benefit with a long-term care feature. In simple terms, you can use the money from the policy to pay for long-term care. Click here for more information about hybrid insurance.
Women also need to plan for the possibility that they will lose their support system due to death, distance and illness. This requires doing the necessary estate planning documents such as Durable Powers of Attorney and Health Care Surrogates and Living Wills.
Have you considered the costs associated with longevity of parents or other family members? I have just the blog about this – Will Caring for elderly parents cost YOU money?This is a cost that many people simply do not even think to prepare for.
Finally, women need to decide what to do with any and all wealth they have accumulated. Many people have their money in retirement accounts which do not provide the same flexibility at death as cash, stocks or bonds. Protecting children and loved ones from creditors, ex-spouses and the like, is essential.
Feel free to contact our South Florida office at 954-726-6602 for all your estate planning and long term care needs.
