You could spend decades saving for retirement and still fall short of your financial needs when you eventually stop working. No one knows how long they will live nor how the economy will change after they retire.
The best anyone can do is estimate what they think retirement will cost and then save accordingly throughout their adult lives. Whether you are checking in on your estate plan because you are a decade out from retirement or you have already started the retirement process and want to adjust your documents to protect yourself, looking at your finances carefully can help you decide what steps to take.
While your savings may be enough to facilitate a comfortable life at home, they may fall far short of what you need to cover nursing home costs.
How much does a nursing home cost in New York?
If you require around-the-clock support and move into a nursing home, the costs will vary depending on where in the state you live. Some people may even choose a nursing home that is hours away from where they currently live just to keep costs low.
A facility in central New York will be the cheapest option, costing on average $264 per day or more than $96,000 each year. Those who want to live in Long Island would pay an average of $390 per day or more than $142,000 per year for their care.
The state of New York estimates that the average person who moves into a nursing home will stay there for approximately two and a half years. That could mean more than a quarter of a million dollars of your retirement savings will go just to nursing home costs. You may not have enough set aside to cover those expenses, especially not after two decades of retirement.
How can you plan to pay for nursing home care?
Advance planning can help connect you with crucial support if you need to move into a nursing home as you get older. Medicaid, unlike Medicare, will cover nursing home expenses. However, the state will scrutinize your finances going back from months when you apply. The sooner you start planning to qualify for Medicaid in the future, the better your chances of succeeding.
Planning for Medicaid and thinking about your long-term needs will help you feel more secure as you approach retirement.