Retirement Savings Tab Just Got Bigger
Fidelity estimates that a 65-year old couple in 2008 will need $85,000 to insure against long-term care needs. In March, Fidelity revealed that its data estimates a 65-year-old couple retiring in 2008 will need approximately $225,000 to cover medical costs in retirement (see Retiree Health-Care Costs $225,000).
“With the average cost of a one-year stay in a private room estimated at more than $76,000, not preparing for these potential costs can result in personal and financial burdens for family members,” Fidelity warned in its release.
Joan Bloom, senior vice president, Fidelity Investments Life Insurance Company, said in the release the costs of some long-term care services have been rising by as much as 7% per year for the last five years.
To illustrate the potential cost of long-term care on family-member caregivers, Fidelity said a 50-year old individual earning $50,000 annually who ends up providing four years of long-term care to a family member, can lose more than $140,000 in wages, retirement savings, and Social Security over his or her lifetime.