The Four Pillars of Planning for Retirement

There are many factors to consider when planning for your retirement or taking on caregiving responsibilities for a loved one. Throughout 2020 LivWell Seniors will feature a “Pillars of Planning” series in each quarterly liveWELL newsletter to help guide and direct families through their journey in discovering the best options for their unique situation.

The four pillars discussed are:

  1. Financial
  2. Legal
  3. Legacy
  4. Living Solutions

Caregiving Pillar 1: Financial

Much has been written about the steadily increasing life expectancy of Americans over the past several decades. According to the United States Social Security Administration, on average, a woman turning 65 today can now expect to live to age 86.5, while a man turning 65 today can expect to live to age 84.

It is important to understand that living longer doesn’t necessarily mean living better.

With advancing age also comes an increased likelihood of a costly health care event—an event that could rapidly deplete a lifetime’s worth of savings without proper planning.

The Case for Long-Term Care Planning

The U.S. Department of Health and Human Services predicts that 70 percent of Americans who are currently age 65 or older will require some type of long-term care during their lifetimes. Given this strong likelihood that you will need care, there are a number of important long-term care related questions that you should address and plan for:

  • Who will be your primary caregiver?
  • In what setting do you want to receive care?
  • How will you pay for care?
  • How will you care impact your family and finances?

Given the option, a majority of individuals would opt to receive care in their own home, rather than in a nursing home or community care facility.

What Exactly is Long-Term Care?

Long-term care consists of those services needed to assist you with the activities of daily living, such as walking, getting out of a chair or bed, eating, toileting, or bathing. It also includes care related to the supervision of individuals suffering from cognitive impairments such as Alzheimer’s and other forms of dementia that render the individual unable to adequately care for themselves.

Long-term care insurance helps ensure that you’ll have access to high-quality care should you ever need it, without having to spend down your life’s savings in order to pay for it. There are a growing numbers of options of long-term care insurance available to fit your individual needs and preferences. It is important that you partner with a trusted financial advisor to guide you through the process of evaluating your future planning needs.

LivWell Seniors offers senior resource options that include information and referrals to discuss your future planning and potential care needs. Our local advisors are familiar with senior living communities in your area. We can also put you in touch with financial professionals that will help you put a plan together to pay for future care needs as they arise.

Contact LivWell Seniors at:

This article originally appeared in the Winter 2020 liveWELL newsletter.