Nearly 70% of today’s 65-year-olds will need some form of long-term care in the future. Without proper planning, these expenses can quickly erode your retirement savings and put your financial security at risk. That’s why it’s crucial to prepare for these “what-ifs” now — before it’s too late.

In this week’s Better Money Boston with WCVB Channel 5, Nicholas J. Colantuono, CFP® clears up the confusion around long-term care and explains what you need to know.

High Out-Of-Pocket Costs

Long-term care services can range from in-home assistance to full-time care in nursing homes or memory care units — and so can the costs. In Connecticut, in-home care with a home health aide averages around $6,873 per month. In Massachusetts, that figure rises to approximately $7,462 per month. Costs for nursing homes or memory care can be significantly higher, often ranging from $10,000 to $15,000 per month. If you haven’t planned, you could end up covering these costs yourself.

Early Planning Is Key

While it’s not a topic most people like to think about, planning for long-term care is often the only way to protect your assets and cash flow from these potential costs. You’ve worked hard to build your wealth, but without a plan, your legacy and your family’s financial future could be at risk. Preparing for these ‘what-ifs’ early can expand your coverage options and provide greater peace of mind for everyone involved.

Coverage Options to Explore

The most common coverage option is purchasing traditional long-term care insurance. However, these policies can be expensive, and qualifying for them isn’t always easy. One drawback is that if you never need care, the premiums you’ve paid are lost.

Some alternatives to explore include setting aside funds specifically for future care costs or choosing a hybrid insurance policy that combines long-term care coverage with a life insurance benefit for your beneficiaries. The good news is that today’s market offers a wide range of options, so if planning for long-term care is a priority, there’s likely a policy or strategy that aligns with your goals.