RT Journal Article
SR Electronic
T1 Practical Applications of Will Long-Term Care Ruin Retirement Plans?
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 4
DO 10.3905/pa.2017.5.2.242
VO 5
IS 2
A1 Michael Crook
A1 Ronald Sutedja
YR 2017
UL https://pm-research.com/content/5/2/1.11.abstract
AB As the American population ages, many families are encountering the expense of long-term care (LTC). While there are different types of care, nursing-home care is particularly expensive, with an average cost of more than $92,000 per year. Those costs heighten the risk of running out of retirement assets in old age, yet it’s impossible to know exactly how much long-term care will be needed as individuals age.In Will Long-Term Care Ruin Retirement Plans , published in the Winter 2017 issue of The Journal of Retirement , Michael Crook and Ronald Sutedja of UBS Wealth Management developed health-status simulations to predict the probability of needing long-term care after the age of 65. Next, they developed a model that assessed the financial impact of LTC costs on retirement plans ranging from $1 million to $10 million.