Long-Term Care Assumptions in My Plan

The Boldin planner accounts for long-term care expenses in your plan and you have a variety of options you may want to explore.

When you utilize the default selection "Plan to use up savings and then try to qualify for baseline care through Medicaid," long term care expenses are included in your projections.

According to Genworth, the median cost of care in an assisted living facility in the United States in 2021 was $4,500 per month. Based upon this data, the Planner's default modeling includes $1,600/mo for 12 months and then $4,800/mo for 16 months in today’s dollars during the last 28 months of your life (or your spouse's).

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 as if the insurance pays the other 80%. Take care to include the cost of any long-term care insurance in your recurring expenses.

If you select 'Plan to purchase a deferred lifetime income annuity to cover the cost of long term care" the Planner will still model the default long-term care costs. Take care to include the cost of the deferred lifetime income annuity in your plan.

If you select "Plan to use home equity to fund the costs," the Planner will still model the default long-term care costs. You may want to go to the Home and Real Estate 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 care community.

If you have medical coverage or don't need long-term care, you can select "Will never require any long-term care" or "Plan to rely on a family member for care" and the Planner will assume that you have no long-term care expenses.

You might want to research costs in your area and at your comfort level and make adjustments you feel appropriate.

Note: Long-term care expenses are subject to the medical inflation rates in your plan assumptions.