DeCesare Retirement Specialists

Work to Wealth

Understanding Extended Care

| Estate, Investments, Planning, Protection, Retirement, Work to Wealth

Our featured article of the month, Understanding Extended Care, explains some high level points on what extended care looks like in terms of its services, cost, and sources for payment. Of course like most things, when you are in it, the reality of the situation is much different.

Reviews by Medicare graded facilties were based on level of care offered, services provided and complaint or violation history. Online reviews varied wildly from five star accommodations to one star complaints that they killed grandma. We decided the best approach was to ask for referrals from friends who have had parents in the faciltiy and those who have worked within these companies. Ultimately, showing up unnanounced for a tour at a few recommended operations was our favored modus operandi. In the end we found a place that suits his personality, his needs for care and one that is logistically convenient for frequent visits.

My best advice for clients and readers of this newsletter is to discuss the possibility of a long term care event with your family well ahead of time and to have a backup plan. We were just a few months away from himr entering his preferred location when he fell, forcing us to find an alternate location. Also, discuss and determine the means for affording such care with your certified financial planning professional sooner rather than later. Finally, be clear to your family and advisor about your desires for care and your expectations of a facility that will ultimately be your new home. Doing it this way may save your caregivers a few gray hairs and some sleepless nights.



Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for individuals who are developing a retirement strategy.

Seven in ten people over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.1

What Is Extended Care?

Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.

How Much Does Extended Care Cost?

Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.1

What Are the Payment Choices?

Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.2

Individuals who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.

Many self-insure by default – simply because they haven’t made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.


1., 2022

2., 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.