As we age, planning for the future becomes increasingly important. One area that many retirees may overlook is long-term care planning.
Long-term care is essential for retirees in Iowa, and planning ahead is crucial to help ensure a comfortable and secure retirement.
According to the U.S. Department of Health and Human Services, an estimated 70% of Americans aged 65 and above will require long-term care at some point in their lives. While long-term care can be a complex and challenging topic, understanding the available options can help ensure you protect your hard-earned nest egg.
In this guide, we’ll explore long-term care planning in Iowa and provide useful information to help retirees make informed decisions.
Here’s what you need to know.
Understanding Long-Term Care
Long-term care is a critical consideration for retirees in Iowa. The support that people may need throughout this period typically lasts several years. This care can include medical and non-medical services that help with activities of daily living, such as bathing, dressing, eating, and toileting.
Moreover, long-term care can involve the supervision and support necessary for people with severe cognitive impairment. Since long-term care needs can be unpredictable and have a significant impact on an individual’s finances, it’s essential to plan ahead and explore different care options and financing methods.
As the Medicare Advantage Open Enrollment Period ends on March 31st, now is the perfect time for retirees to review and adjust their healthcare coverage to help ensure they have the right coverage for their needs. Medicare does NOT cover long-term care. For this, you will need separate insurance.
Long-Term Care Options in Iowa
Iowa offers several options for long-term care. This includes home health care, community-based services, assisted living facilities, and nursing homes. These options provide various levels of care, ranging from minimal assistance to around-the-clock medical care. Some facilities also offer specialized care for individuals with specific conditions, such as Alzheimer’s disease.
Home health care is a popular option for those who wish to receive care in the comfort of their own homes. This type of care can include skilled nursing services, personal care, and therapy. Community-based services, such as adult day care and senior centers, can provide social engagement and activities for seniors.
For those who require more medical care, assisted living facilities and nursing homes offer a range of services, including medication management, meal services, and rehabilitation services.
Financing Long-Term Care
Currently, the median national monthly cost for nursing home care is $7,756 for a semiprivate room and $8,821 for private care, and costs may go up significantly in the coming decades.
Median nationwide cost of nursing home care.
| Year | Semiprivate room* | Private room* |
| 2023* | $7,441 per month | $8,365 per month |
| 2033 (estimate**) | $10,947 per month | $11,855 per month |
| 2043 (estimate**) | $14,711 per month | $15,932 per month |
*2023 statistics source. **Future predicted data based on using Genworth’s Cost of Care Survey tool.
As you can see, long-term is costly, and it’s essential to plan ahead to help ensure that you can afford the care you need. The average cost of three years of long-term care in Iowa is currently $268,275, which amounts to an annual cost of $89,425 based on 2021 rates.
It’s important to note again that Medicare and private health insurance typically do not cover long-term care. It’s crucial to explore other financing options.
Long-term care insurance is a viable option to consider for covering the costs of long-term care services (See the Dos and Don’ts of planning for Long-Term Care Insurance here). However, it’s crucial to understand the policy’s requirements and limitations before committing to it. Another financing option for long-term care is Medicaid, which is available for individuals who meet the income and asset requirements.
Working with a trusted Fiduciary advisor can help retirees explore their options and make informed decisions regarding their long-term care planning.
Planning Ahead
Planning for long-term care can be complex and overwhelming, especially for retirees who may be dealing with health issues or significant life changes. Working with Fiduciary advisors, like the team at Johnson Wealth and Income Management, can provide retirees like you with invaluable guidance and support.
As a Fiduciaries, we are legally obligated to act in your best interests. Our goal is to help ensure that you receive unbiased advice that aligns with your unique financial goals and needs. Additionally, our firm has in-depth knowledge of Iowa’s long-term care options and financing methods; providing you with tailored financial advice and solutions.
By working with us, you can gain peace of mind in your long-term care planning decisions. Moreover, you can rest assured that your financial advisor is working diligently to help you achieve your desired retirement lifestyle.
Last Thoughts
Long-term care is an essential consideration for retirees in Iowa. The decisions (and costs) have never been greater.
Understanding the available options and financing methods can help you navigate this changing landscape and help you determine the best option for you and your family.
Don’t wait until it’s too late, contact us today to set up your complimentary consultation.
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