While most of the writings in these columns have addressed the positive aspects of longevity, the reality is we need to prepare for the possibility of the challenges, too.  Long term care (LTC) is one of the most critical, yet overlooked aspects of planning for retirement -- the missing link, and it’s time we address it.

With November being LTC Awareness Month, this is a current topic of media interest. I recently participated in a webinar sponsored by Genworth Financial, featuring Ken Dychtwald, Ph.D. renowned gerontologist and one of the leading experts in the field of aging, who recounted both his professional and personal outlook on the coming crisis. While ‘crisis’ may seem too harsh a term, the reality is LTC will indeed become a crisis financially and personally to most every American family if we don’t address these issues immediately.

It’s certainly more enjoyable and palatable to celebrate the numerous beneficial aspects of living longer, yet as we age, we do become more susceptible to problems. In fact, at least 70% of people over age 65 will require LTC services at some point in their lives; more than 40% will need care in a nursing home, and 20% of those will need care for five years or more, according to the U.S. Dept of Health and Human Services (September 2008). And this is not just an age related issue; four out of ten people currently receiving LTC are adults age 18 to 64.

Now I’m not a big fan of scare tactics to persuade people’s opinions, but the bottom line is, the facts are both compelling and scary, so we can either choose to acknowledge them and take pro-active steps to be prepared, or we can hope it never happens to us and pray we’re one of the lucky ones -- and definitely among the minority.

As one of the first gerontologists to receive a degree in this field and having devoted over 25 years to the study of aging, I’m very aware of the downsides of aging. My focus however, has been to educate and motivate people on ways to prevent the common pitfalls by living positive, healthy, vital lives. The reality is, that’s not enough, and it’s my responsibility to address this.

When I first started In this field, I distinctly remember the majority of seniors and older adults I worked with telling me that the single, most important thing in their lives, outside of their family and friends, was to maintain their health and independence – to never be a burden to their families or society.  Most of us now know that much of the aging process is within our control, so we do our best to take care of ourselves. However, are we taking the necessary steps to be sure we’re not a burden? And let me clarify, it’s not so much about being a burden, as much it is about maintaining a quality of life that won’t have not only devastating financial consequences, but emotional and psychological challenges on the individuals themselves, as well as the entire family, and circle of loved ones too.

It’s estimated that 40 million families in the U.S. today are caregiving in some capacity – that’s 80% of caregiving being provided informally. But most families don’t have much choice because the average cost of a year in a nursing home is $75K, and the median cost of an in-home aid hovers around $42K a year. And this doesn’t even begin to factor in the financial and emotional toll it takes on the caregiver’s family. It’s actually estimated that the average caregiver loses $650K over the course of their lifetime in wages and lost benefits to care for a loved one.

While it’s no secret that one of the biggest fears in America today is outliving our money, medical expenses not covered by Medicare or insurance is the single most frightening financial worry in retirement. And rightly so because neither covers virtually any of the cost of nursing homes, assisted living facilities or in-home care -- the very care many people require later in life. As a result, many people pay out of pocket until they are practically destitute and then Medicaid kicks in. And those who thought they had saved adequately, often end up impoverished, getting substandard care.

So while most people know healthcare is likely to be the most expensive cost in retirement, and unpredictable as well, why isn’t LTC a major topic of discussion in more families today? It’s likely due to our feelings of fear, denial and confusion about the topic, so it’s no wonder no one wants to address it. But educating ourselves before a time of crisis is part of life planning, and if we don’t do it, who will? Oftentimes, once we get the facts and understand our options, the fear disappears. 

The bottom line: we need to address LTC and educate ourselves about the array of options available today. It is the missing link in many peoples’ plans and there will be nothing more financially or emotionally devastating than being unable to provide a loved one with the quality care they need. Talk to your families, talk to a financial professional (and if you’re a financial advisor, talk to your clients), and make a plan, now!

Here are a few good resources that might also help:

• www.caringtalk.com
• www.longtermcare.gov
• www.researchltc.com
• www.genworth.com
  

Kelly Ferrin, gerontologist and author of “What’s Age Got To Do With It? Secrets to Aging in Extraordinary Ways” has been studying aging and retirement issues for over 25 years. She was one of the first to ever receive a degree in this field from the prestigious Andrus School of Gerontology at the University of Southern California, the top school in the nation for age-related studies.

website: kellyferrin.com ••• email: ageangel@earthlink.net