If you want to make accurate projections as you are planning for the latter portion of your life, you must stay abreast of relevant cost trending. With this in mind, we would like to take a look at the results of the 2010 MetLife Mature Market Institute survey that puts the topic of long-term care costs under the microscope.
The average annual charge for a year-long residence for a private room in a nursing home, in the United States in 2010, was over $83,500. This is a 4.6% increase over the 2009 cost of just under $80,000. In the state of New York, this figure was considerably higher, at an average of $127,750 per year. In 2010, the national average charge for a year in an assisted-living facility was around $39,500; a 5.2% increase over the previous year. In New York, the average was once again higher, exceeding $44,000 annually.
Now you may look at these figures and recognize the fact that these expenses are considerable, but feel as though it is not very likely that you will have to spend any time in a long-term care facility. However, when you look at statistics you will invariably find yourself reconsidering this perspective.
According to the United States Department of Health and Human Services, approximately 7 out of every 10 individuals who reach the age of 65 will indeed require some form of long-term care eventually, and this includes possible in-home care. 40% of seniors will someday spend time in a nursing home, and the average length of stay, for those who do in fact require nursing home care, is approximately 2 1/2 years.
So when you examine the statistics, the reality is that you may well incur long-term care expenses toward the end of your life. This is something to consider when you are working on your long-term plan, and you would do well to be proactive and budget accordingly.
Michael Robinson, Estate Planning Attorney
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