May is Older Americans Month, a great time to plan for the future.
May is a great time for people who are in their pre-retirement years to start planning for retirement issues like long-term care.
(PRWEB) April 22, 2004
The US Administration on Aging has designated May as “Older Americans Month.” It’s a great time for local adults to think about the plans they've made for a secure future.
Healthy pre-retirees look forward to and plan for an active future. But smart planning involves a lot of legwork. And contingency planning – for when something goes wrong – is crucial.
Spring is the time of year when gardeners are picking out seeds and prepping the soil for summer flowers and vegetables. Clearing out the dead plants and leaves from last year, enriching and turning over the soilÂ…it takes a lot of hard work before the flowers and fresh vegetables are enjoyed.
Matt McCann, a nationally known speaker and specialist in long-term care planning says most adults will tell you that, like gardening, the best things in life first demand commitment, discipline, and hard workÂ…before the spectacular results.
"This is true whether we are working towards a degree, saving for retirement, or making plans for when we need long-term care," McCann said.
Planning for when we need long-term care? McCann says that in our culture, planning for old age sounds a little like throwing in the towel. Many of today’s baby boomers do not plan on ever being the kind of old person who needs assistance – and this attitude will not serve them well when reality hits. The federal government says that half of us will need some form of long-term care during our lifetime. McCann says this means we need to be thinking about it before the time comes where we require care.
McCann says reality may not have much to do with the active retirement most people have in mind. Active retirement includes travel, and other pursuits that they didn't have time to pursue before. He says this stage of retirement lasts until one of the following happens:
They run out of money; or
Their health declines and they need long-term care.
"Smart people plan to avoid running out of money, and also plan for the day their health declines. When a senior's health declines, that's when their expenses often escalate dramatically – to pay for long-term care that's not covered by Medicare and traditional health insurance," McCann said.
Since May is “Older Americans Month” it’s a great time, according to McCann, for adults to think about the plans they've made for a secure future. Financially, most American's have paid into social security, and are aware of the importance of saving for retirement. They have IRA's, 401ks and other retirement savings but they may not have considered how they will pay for long-term care. The risk of needing care is the biggest risk to a person's savings when they hit retirement.
"May is a great month to look into long-term care insurance, or, if you have a policy, call your agent to make sure your policy has kept up with the cost of long-term care," McCann said.
"Time is our enemy when planning for our finances. Those of us who are still young and healthy need to plant the seeds nowÂ…for a spectacular retirement," he said.
Let the facts provided by the Administration on Aging provide motivation:
MOST older people have at least one chronic medical condition, and many have multiple conditions. 495 have hypertension, 31% have heart disease; 15% have diabetes. 16.8% of older Americans live in poverty or near-poverty. Half of older women age 75+ live alone (without a caregiver in the house).
By the year 2030, the age 65+ population will have more than doubled.
"Denial is the only reason people don't plan ahead for long-term care. This is why denial is such a danger to our future," McCann said.
McCann, a Darien, Illinois resident, is a specialist on long-term care insurance and speaks to groups and organizations on long-term care issues. His web site offers additional information, www. McCannLTC. com or email him Matt@McCannLTC. com. His office number is 800-959-7055.
