Navigating the Complexities of Eldercare: Insights from The SKG Team at Barnum Financial Group in Elmsford
As the population ages, the need for eldercare services continues to grow. With statistics showing that a significant portion of the population will require some form of eldercare in the coming years, it’s essential for individuals to start planning for this phase of life early on. Chris Kampitsis and Ben Soccodato, who head The SKG Team at Barnum Financial Group, are experts in the field of financial planning, including eldercare finance.
The cost of eldercare can be daunting, with annual expenses ranging from $30,000 to over $180,000 depending on the type of care and location. Many retirees are concerned about outliving their savings and the potential burden on federal and state governments. Planning ahead and developing a proactive strategy is crucial to ensure a comfortable and independent lifestyle in later years.
One financial tool that can help cover eldercare expenses is long-term care insurance. While premiums can become prohibitive in one’s 60s, there are now hybrid solutions available that offer more flexibility and benefits. These policies can provide leverage to the insured or their beneficiaries, ensuring that the money paid into the policy is not lost.
Medicare may not cover all eldercare costs, especially for prolonged chronic events. Medicaid is a government program that can help cover long-term care expenses, but specific financial eligibility requirements must be met. Planning devices such as trusts can also be used to potentially qualify for Medicaid, but they may come with significant loss of control.
Early planning and professional guidance are key to navigating the complexities of eldercare finance. The SKG Team at Barnum Financial Group offers expertise in this area and can help individuals develop a comprehensive financial plan that includes provisions for eldercare. By starting the conversation early and considering all available options, individuals can ensure a smooth transition into their later years with peace of mind.
