As you get closer to retirement age, you have to think about what your budget will look like when you stop working. You will also need to plan ahead to protect yourself from unexpected expenses and financial hardship. Many retired adults depend on a combination of personal savings, Social Security Retirement benefits and Medicare coverage after the end of their careers.
If your health declines as you get older, you may eventually need to live in a nursing home, even if you hope to stay in your own home for as long as possible. Carefully planning ahead to cover long-term care expenses is crucial even if you have a well-funded retirement account.
Nursing homes cost thousands of dollars a month
People living in the Frankenmuth area will have their choice of numerous nursing home facilities both near the town and in bigger cities nearby, like Saginaw. They can also choose the kind of accommodations they want. You could have your own room or take out a roommate to reduce your costs.
According to data from 2020, the average cost of a private room in a Michigan nursing home is $9,733. A semi-private room is only slightly more affordable, with an average cost of $8,973 per month. Staying in a nursing home will quickly eat up what savings you have for retirement unless you can get Medicaid benefits to cover the costs.
Medicare does not cover nursing home expenses, leaving Medicare recipients with potentially thousands of dollars a month in uncovered bills. Medicaid applies stringent rules about how much property or income someone can have if they want benefits.
Advance long-term care planning can help you get the benefits you need when you get older while helping to preserve some of your retirement savings for your comfort as you age.