As you watch your parents get older and struggle with the concerns surrounding their estate planning decisions, you might realize how thankful you are that you started saving when you were young.
However, until you have to make these decisions for yourself, you might not understand that there’s a limit, even a well-funded retirement account. If you question why you should establish a Medicaid plan, you might want to put the average cost of nursing home care into perspective.
Average nursing home costs throughout the United States
You have probably taken vacations where you spent a few days in a hotel at a couple hundred dollars per night. Since you saved for it, it might not have seemed like a big deal.
However, when you consider nursing home care, you should understand that:
- The average rate of a private room in a Florida nursing home facility is $9,064 per month. That’s slightly more than $300 each day. On an annual basis, you could expect to pay more than $108,000 for your living arrangements.
- If you choose a semi-private room, you could still anticipate spending $8,152 each month. At $97,824 per year, you would spend about $272 each day.
- For most Americans, those costs likely seem astronomical – especially if you need to pay them out-of-pocket. Not only do these long-term-care expenses potentially seem staggering, but they also increase each year. According to national averages, your anticipated costs of a private room in a nursing home will likely be nearly $135,000 by 2028.
If you started saving when you were young, your retirement accounts could possibly bear the weight of some nursing home fees. However, if your financial goals extend beyond a few months of care, it may be in your best interest, and that of your children, to explore how Medicaid could cover your expenses.
Understanding how you can put your hard-earned money to good use could help you establish yourself in your golden years. Being aware of your options may also equip you to leave a legacy.
