Long-Term Care Assumptions in My Plan

Default assumptions

Options

How to turn off long-term care in your plan


Default Assumptions

The median yearly cost of care in an assisted living facility in the United States in 2020 was $51,600. Based upon this data, the Planner's default modeling includes $4,300 per month in today’s dollars. The system will apply these long-term care costs to the last 28 months of your life (and your spouse's) if you do not indicate that you have a long-term care policy, plan to purchase an annuity or long-term care policy to cover long-term care, plan to use home equity, expect a family member to help care for you, or predict that you will not ever need long-term care. You might want to research costs in your area and at your comfort level and make adjustments you feel appropriate.

You can view these long-term care expenses in your Insights > Income and Expenses > Estimated Expenses Chart

Options

You have the ability to change the Long Term Care assumptions in My Plan > Expenses > Long Term Care.

If you select "Plan to use home equity to fund the costs," you may want to go to the housing page and estimate when the care would be needed and how you might want to access your home equity. Common solutions include getting a reverse mortgage to fund in home care and selling your home to fund a nursing home.

If you select "Have a long-term care policy" or "Plan to purchase a long-term care policy," the Planner will model 20% of the long-term care expenses in the last 28 months of your life (or your spouse's), as if the insurance pays the other 80%. In mathematical terms, instead of the default $4,300 per month, the Planner will add $860 per month in long term care costs. Take care to include the cost of any long-term care insurance in your recurring expenses.

If you have medical coverage or don't need long-term care, you can select "Will never require any long-term care." The Planner will assume that you have no long-term care expenses. See below for more detail.


Bear in mind that long-term care expenses are subject to the medical inflation rates in your plan assumptions.


Long-term care cost estimates are based upon the Genworth Cost of Care Survey 2004-2020.


How do I turn off long-term care assumptions in my Plan?

If you have medical coverage or don't need long-term care, you can select "Will never require any long-term care." The Planner will assume that you have no long-term care expenses.

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