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Think a nursing home costs $60K? The real cost is $112K
USA Today • • business
Key Points:
- A survey by Ethos found that while Americans want to live to an average age of 88, they believe they can only afford to live until 83, with nearly half expecting their retirement savings to run out before age 80.
- Financial fears about longevity are more pronounced among younger generations, with Millennials and Gen Z showing a 7-year gap between desired lifespan and financial preparedness, compared to a 2-year gap for Boomers.
- Nursing home care is the top financial concern for aging Americans, yet many significantly underestimate its cost, which averages over $112,000 annually for a semi-private room.
- Experts recommend planning for income that lasts a lifetime through strategies such as purchasing life insurance, delaying Social Security benefits, considering annuities, and rethinking retirement with phased work or flexible careers.
- Utilizing home equity as a financial reserve and spending some inheritance money for personal care are suggested ways to enhance retirement security and reduce reliance on children for support.
