Elder-Care Costs Are Rising Rapidly—Be Careful

Elder-care costs are rising rapidly. And so are the cost of butter tarts. Why people need to factor in higher-than-typical costs for elder care.

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Elder-care costs are rising rapidly. Demographics, of course, are increasing the demand. And, in some parts of the field, we also have a worker shortage. Supply issues, therefore. You know a lot of financial experts wisely used to point out that most seniors spend less after, let’s say, age 76. Why? Well, many tend to cut back on travel. And often on socializing, too.

Well, there is a major problem with that assumption—nowadays, late-life care costs are expensive and rising and catching a lot of people. I’m seeing it more and more. 85ish, 87-year-olds refusing to go to an LTC-care facility—I get it—or not being able to get in. But they need help every day, a lot of help.

Whether it’s moving into an assisted-living facility or arranging in-home care, it’s big dollars. Now lots of people can afford it, I admit that, especially if they’re willing to spend down principal. But for many others this is proving to be very tough on their finances. Regardless, advisors probably should be factoring this in to more clients’ spending forecasts.

You know, we spend over $25 grand a year on my dad’s butter tarts, donuts and cakes. Though that doesn’t need to be factored into his spending—he never pays us back. You know, he should have written “The Wealthy Barber,” not me.