"Your income and retirement planning doubles as your long-term care planning as well. A late-life health shock could drain the portfolio your spouse still needs to live on."
"In late retirement, discretionary outflows often fall as health declines, freeing up the same dollars to cover essential care."
"Your normal spending goes down, but your income should not go down. So then that income can now go towards healthcare."
"It's too expensive for people who don't have a lot of assets. People with a huge amount of assets may find it more beneficial."
Long-term care planning should be integrated with retirement planning. A significant health event can deplete retirement savings, impacting a spouse's financial security. In late retirement, discretionary spending typically decreases, allowing funds to be redirected towards essential care. A couple with at least $1 million in investable assets and multiple income streams can maintain a substantial monthly income. As spending on non-essential items declines, the income can be allocated to healthcare needs, making long-term care insurance less necessary for many households.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]