The rising cost of healthcare, particularly for baby boomers, has become a major concern as healthcare expenses continue to climb at double-digit rates each year. These rising costs are a leading cause of unplanned retirement fund spending, making long-term care planning an essential part of securing your financial future. Without proper planning, healthcare costs can significantly accelerate the depletion of retirement savings.

When preparing for retirement healthcare costs, it’s important to keep two critical points in mind:

• Medicare does not cover long-term care for nursing homes, and neither private nor Medicare insurance covers maintenance care.
• On average, nursing home residents with Medicare pay between $60,000 to $80,000 per year for institutional care, which can rapidly deplete your retirement income and assets.