Long-Term Care Costs Could Wipe Out Your Savings
Even if your nest egg is large enough that you won’t outlive your savings, you still could run out of money if you don’t have a plan to cover long-term care costs, Geary said. If you reach age 65, there’s about a 50-50 chance you will need some sort of long-term care, according to the U.S. Department of Health and Human Services. This sort of care isn’t cheap.
The median annual cost of an assisted living facility is $45,000, and the median monthly cost of a private nursing home room is $97,452, according to the Genworth 2017 Cost of Care Survey. “You could easily burn through $1 million taking care of one person,” Geary said.
