I enjoyed watching Peyton Manning and the Broncos win the Super Bowl last night. Many reports say that it was Peyton’s last game and he is retiring from football at the age of 39. He will probably do some endorsement work, is rumored to be a quarterback coach at the University of Tennessee, and will receive a pension from the NFL. While few Americans retire at 39. There are many that retire in their mid-sixties, this creates planning issues when considering how long retirement money will last. With life expectancies creeping into the 80’s, and people living to their 90’s and over a hundred is no longer an anomaly, this puts a strain on planning for retirement. One of the ways to protect retirement savings is to plan for long term care.
The incidence of needing long term care is increasing as medical science can now keep people alive much longer. This combined with the increased demand for care from the baby boomers increases long term care costs. One of the ways to protect from the cost of long term care is to purchase long term care insurance. These policies pay a cash benefit monthly that can be used to pay for long term care. The younger and healthier an applicant for long term care insurance is, the better coverage at cheaper premiums they will receive.
VA pension planning is another option to cover the cost of long term care. VA pension provides monthly tax free assistance to veterans and their surviving spouses that can be used to cover long term care costs. This is a valuable long term care benefit that can be used to prolong coverage under long term care insurance, as benefits can be drawn down more slowly. There are complex income and assets tests that must be considered when applying for VA pension, so it is recommended that one seek the services of an experienced elder law attorney.