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The Sky's the Limit...

By
Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

The Sky's the Limit...

on Long Term Care Costs

Nursing home care, or in-home care, is expensive and the costs continue to raise, according to an article published by Reverse Mortgage Daily, which cites the findings of a survey involving more than 16,000 care providers nationwide. 

While the costs of nursing homes versus in-home care or living communities vary, prices are rising all across the board. 

Currently, the cost of a private room in a U.S. nursing home averages roughly $94, 170 per year and the costs of assisted living averages $41, 124, according to John Hancock Life Insurance Company. Nursing home rooms have risen the most in the past year, with a 3.65 increase for both private and semi-private rooms. Assisted living has risen only 2% in the last year.

At the bottom of the spectrum, is in-home care, which costs $29,640 per year, on average and has risen at least 1.3% in the last year.

The costs, surprisingly vary by geography, although there isn't an exact science to determining where and why there exist pockets of cost discrepancies.

Despite these findings, the retirement savings gap recently reach $14 trillion, making older Americans more unprepared than ever for retirement. It's shocking to see how much prices continue to raise but how little future retirees save for expected (and unexpected) expenses. The future isn't written in stone, of course, but there are guidelines and preemptive methods working Americans can take in order to supplement their retirement.

If you are looking to age in place, but need in-home care and assisted living, the costs can put a big hole in your pocket. Debt during retirement is not ideal, in fact, many retirement planning websites suggest that your mortgage is paid off by the time you retire.

This is unrealistic, most of the time, but consider the amount you have saved, are saving, or are planning to save? Is it enough to maintain your style of living? PROBABLY NOT.

There seems to be a disconnect between between retirement expectations and the steps older Americans are taking when it comes to saving. A certain standard of living can only be achieved by planning ahead, not in the moment.

reverse mortgage is an excellent retirement planning tool because there are many options for those seeking a comfortable retirement, especially the line of credit option, which allows you the flexibility to draw funds whenever they are necessary, while the unused portion grows at an annual interest rate.

At PS Financial Services, a reverse mortgage company in Florida, we offer all the reverse mortgage options available for a retiring or retired senior homeowner. Make sure your retirement is liberating, not suffocating. Give us a call at (888) 845-6630 or send us an email at  info@PSReverseMortgage.com. We do not pressure those who inquire.

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Information and content in this blog is original to Phil Stevenson

Please click the "SUBSCRIBE TO MY BLOG" button on the right, and receive more Traditional and Reverse Mortgage information in Florida and other parts of the US & Puerto Rico.

 

Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Show All Comments Sort:
Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Phil it is shocking how much these nursing homes cost. We all need to consider this when we plan for retirement.

Nov 20, 2013 09:12 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Helen & Larry, it was definitely shocking to read. There are times when you think you know what's going on but ypu have no idea. I can;t imagine in a few years how much it'll cost if we don't plan but, most importantly, if we do.

Nov 20, 2013 10:10 AM
Rebecca Foresee
Alain Pinel Realtors - Morgan Hill, CA
Let's foresee the possibilities . and get results!

Phil, Planning ahead is key to achieving financial stability.  Senior care will continue to rise just as everything else does.  Thank you for sharing these data points.

Nov 20, 2013 12:19 PM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Rebecca, it definitely pays off to look clearly into the future and know what you want out of life so you can plan for it. If you look at all the possibilities, you're financial stability benefit.

Nov 20, 2013 11:12 PM