visimoney
According to a team of experts, the full lifetime odds of developing dementia or cognitive impairment for people over 50 years old can be as high as 67%. For those in their late 80s, about half of them are affected by dementia or cognitive impairment. A recent report in the Journal of the American Medical Directors’ Association discusses the “catastrophic” financial risks of dementia in old age. The median senior citizen with dementia, living in a nursing home or assisted living, spends between four-fifths and 100% of their monthly income on long-term care, while a quarter of them spend close to 300% of their monthly income. This level of expense is not sustainable, and many individuals end up exhausting their assets and relying on Medicaid. People living at home with dementia who are paying out of pocket for care spend an average of $1,260 per month, or $15,000 per year. However, many people aging in place are cared for by a family member and it is often an exceptionally heavy burden for the caregiver. This raises concerns regarding unmarried individuals or those without children, as well as spouses who nurse a partner with dementia. The financial burden also affects Medicaid, Medicare, and state governments. Although the federal government has been expanding its home help support, currently 99% of beneficiaries are on Medicaid. Some states have introduced their own programs, but their maximum benefits are still limited. Financial planning for long-term care is crucial, and one way to prepare for potential cognitive impairment like dementia is a long-term care policy.
