Costs for care were rising before the recent inflation spike and market decline. With birth rates and migration to the United States steadily declining, there will be fewer able-bodied workers in the healthcare sector by the time today’s adult population reaches their elderly years. At the same time, older Americans are one now of the fastest-growing demographics in the country.¹ Fewer caregivers, coupled with an exponential increase in demand, will assuredly cause costs for care to climb steeply.

In times of economic uncertainty, it may be tempting to delay planning for retirement. But it’s important not to lose sight of your future plans for well-being. Even if current conditions have put your retirement plans on hold, keep the following in mind:

• Most LTC policies offer inflation protection riders to help guard against the rising costs of long term care.
• LTC insurance proceeds are guaranteed, unlike returns on other savings and investments. The guaranteed tax-free benefits from an LTC policy can help you access quality care options, no matter what the economic conditions.
• Some LTC insurance is better than none so consider even a small LTC policy. Whatever you can afford today will reduce the likelihood of your spending down your assets in the future.
• You may end up inadvertently funding LTC through a payroll tax if you live in Washington, California, New York, and a number of additional states considering their own state LTC plan. Proactively putting a private plan in place now can provide you with much more meaningful coverage in addition to helping you avoid the tax.      

While it’s impossible to know what the future may bring, it’s important to start planning while you’re young and healthy, and have access to a variety of options. The Alumni Benefits Program offers a choice of LTC plans from leading insurers. Schedule a no-obligation appointment with an Advisor to get started.

¹ “Projected Future Growth of Older Population,” Administration for Community Living, acl.gov, May 2022.
²  “Genworth Cost of Care Survey 2021,” Genworth.com, February 2022.