Planning for retirement can be scary for some workers. Preparing for long-term care (LTC) during the latter years of retirement can be even more daunting.
It’s why T. Rowe Price has launched a new resource aimed at navigating LTC during retirement. “Planning for Life and Long-term Care in The Second Half of Retirement: A Comprehensive Guide,” is designed to help retirees and soon-to-be retirees with the complexities of planning care during the last years of retirement and explores how retirees can factor long-term care into their overall retirement plan.
“The second half of retirement is often filled with unique challenges which require thoughtful preparation and a clear understanding of the risks and planning options available,” said Lindsay Theodore, senior thought leadership manager at T. Rowe Price.
According to T. Rowe Price, the guide will offer information about the housing and support options available to pre-retirees and retirees, along with the costs associated with each option.
Retirees will be able to estimate long-term care costs using T. Rowe Price’s analysis, which considers housing and care preferences, health and family medical history, and real-life long-term care expenses incurred by other retirees.
Ultimately, the guide uses this data to provide material about available products and strategies, like insurance, that can help individuals prepare for the future, rather than solely using a self-funding plan to provide for long-term care.
Studies show that pre-retirees worry whether they’ll be able to afford long-term care costs, even as half expect they’ll need the care in the future.
A 2023 Transamerica survey found that 74% of 1,700 individuals surveyed agreed that extended care should be a part of retirement planning, yet only 45% admitted to having thought about planning for their own long-term care needs.
Respondents to the Transamerica survey categorized costs as a leading concern regarding extended care needs, with 75% of respondents listing it as their top issue. While 45% of respondents plan to use insurance to pay for their extended care, only 22% said they had extended care insurance.
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