By AARP Education & OutreachWomen are more likely than men to experience the need for long-term care. Planning early for retirement—and any long-term care you may need—is one of the smartest decisions you can make.
There's just no stopping American women, especially those who are part of that dynamic force of 60 million 45- to 64-year-olds whose influence is evident in every thread of the nation's tapestry. You're independent vocal women who expect to have it all and often find yourself challenged to do it all—at home, in the workplace, and in the community. Add to that the demands of caring for aging parents, and it's no wonder that you have little time to slow down to take care of yourself, including developing personal and financial plans for your long-term care.
What is Long-term Care?It's a common name that many are hard-pressed to define, but think of long-term care as the support you may need down the road simply to go about daily life. This kind of care can include changes to make your home more accessible, safe, and comfortable; technology that prolongs independence; or services that offer help with meals, transportation, and personal care.
Long-term care also includes medical care such as rehabilitation services or visits from a nurse. The need for these kinds of services can last several months, years, or until the end of life. Many people receive long-term care at home or through adult-day programs and other community services. Others move into supportive housing with meals and housekeeping, assisted living for people who still have a measure of independence but need help with personal care, or a nursing home for those who can no longer care for themselves.
Why Women? Research shows that you’re more likely to have a need for long-term care than men. Here's why some experts consider this challenge a major issue for women of the boomer generation.
• Women live longer. According to AARP's Public Policy Institute, women make up more than two-thirds of Americans age 85 or older. Those who reach 65 can expect to live an average of 20 more years, outliving men by about five years.
• Women have fewer resources. Women often have drastically lower incomes than men, especially women who have gone through divorce, widowhood, job loss, and who have served others as caregivers, reports the Women's Institute for a Secure Retirement. Almost half of women 75 or older live alone. On average, says AARP, their income is only three-quarters of what older men make—and less than half of what older couples bring in.
• Women are more likely to need long-term care. About 79 percent of 65-year-old women will need some long-term care during their lifetime, finds Georgetown University's Health Policy Institute. On average, these women will end up needing 3.7 years of care. Men age 65 are likely to need about 2.2 years of care over the rest of their lives.
• Many women aren't planning for the future. An AARP report on whether middle-age women are ready for retirement warns that many of this generation—even those on the verge of retiring—don't know how much income they'll need and what costs they'll need to cover.
• Long-term care is expensive. In 2009, the average national cost for assisted living was more than $34,000 a year, according to the annual Genworth Cost of Care Survey. The yearly cost of a private room in a nursing home was nearly $75,000, and costs for home-health aides averaged almost $19 an hour. AARP's Long-Term Care Cost Calculator can help you figure out the cost of care by state.
• You'll likely pay out-of-pocket. Many people mistakenly believe that Medicare and private health insurance pay for long-term care. In reality, Americans pay for most long-term care themselves until their savings become so depleted that they qualify for Medicaid. But Medicaid often means fewer choices, especially as states face budget crises. In most states, the majority of Medicaid funds for long-term care go toward institutional providers. Yet, AARP finds that most people prefer to receive care in their homes or through community programs.
• You may never need long-term care, but your loved one might. So the knowledge you gain planning for yourself can also make it easier for you to help the people in your life. According to a survey by the National Alliance for Caregiving and AARP, six out of 10 family caregivers are women. As a caregiver, you are more likely than a man to provide 40 or more hours of care a week.
• Caregiving affects your wallet and your job. According to AARP, more than 60 percent of family caregivers who are women say they've had to make career sacrifices to accommodate caregiving. This often means cutting back on work hours, passing up promotions, or leaving the workforce entirely.
Why Now?You're part of a generation uniquely poised to redefine retirement, using your current earning power to save and invest wisely for the future. You still have time to build and expand support networks—on the job and through family, friends, community, and faith-based institutions—that can help you and those around you. Planning ahead increases your options and keeps you in charge of decisions that affect your life. It’s important for you to know the costs of long-term care options and how they might cover your choices through savings, investments, insurance, or other resources. The more your generation of women plans today, the more retirement, lifestyle, and financial choices you'll have later.
For more information about planning for long-term care, visit www.aarp.org/ltc. Decide to plan for long-term care, create a plan that works for you, and share it with your loved ones. Let AARP help you Decide. Create. Share.SM
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