There are many reasons why you want to plan ahead for your financial future. One reason to do this is simply that you may need medical care as you age. This is very expensive, and many people have no way to meet these costs when the time comes. If you plan ahead, however, you can have a financial framework in place to make it affordable.
One thing to keep in mind is that the cost of elder care keeps increasing. For example, the cost of in-home care went up by more than 4% from 2019 to 2020. That same report found that paying for a nursing home with a private room would cost more than $105,000 per year. Some people turn to in-home care as a way to reduce the costs and stay in the house that they love, but even this was shown to cost almost $55,000 per year.
Will the costs drop?
It is unlikely that these costs are going to decline. In general, costs always tend to rise, and this is especially true as Baby Boomers age. This generation was a balloon in population, which means that there are a disproportionate number of individuals getting closer to needing this care. That puts strain on the system and increases the costs.
You also have to think about inflation. It is always increasing, as well, but it has been increasing very quickly lately. This has been transferred to the cost of almost all goods and services that you can purchase. Inflation and related events can also impact the cost of care for the elderly.
All of these increasing costs mean that you don’t want to put off making an estate plan with financial decisions set up to protect your future. Be sure you know exactly what legal options you have and what steps to take.