The Looming Crisis for Middle-Income Seniors
Concern about how elders will be able to finance long-term care is growing as the population ages. A study conducted by NORC at the University of Chicago and funded by The Scan Foundation that was published in 2022 indicates that middle-class seniors may experience a serious issue in the ensuing ten years. By 2033, 11.5 million seniors aged 75 and older may not be able to afford assisted living and will not qualify for Medicaid.
The average amount required to cover private assisted living and medical care is $65,000, according to the report, and nearly three-quarters of middle-class seniors will fall under this threshold in terms of income and annuitized assets. 39% of these seniors wouldn't have enough money to cover the fees even if they sold their homes.
Medicaid, the government program that helps pay for long-term care, is designed for lower-income Americans. That is why a lot of middle-income seniors still won’t qualify. Eligibility is based on a person's Modified Adjusted Gross Income (MAGI) and varies by state. In most states, the income limit for Medicaid is $2,523 per month for a single person and $5,046 per month for a married couple. The rising cost of assisted living care combined with Medicaid income limits creates a gap that many seniors will fall into, especially those aged 75 and older who typically begin to experience health issues that make it challenging to live independently.
The implications of this problem are significant. As Dr. Sarita A. Mohanty, president and CEO of The SCAN Foundation said that 11-and-a-half million older adults won’t qualify for public assistance and will most likely be unable to pay for their long-term care and assisted living. Homeowners may be forced to sell their homes, and even then, many will not be able to afford their needs.
This problem emphasizes the need for more solutions to deal with the long-term care requirements of elders. Authorities need to think about how to give seniors with middle-class incomes more Medicaid eligibility and give families who are taking care of elderly relatives more financial support. Also, there is a need for more inexpensive assisted living options and new approaches to support aging in place.
In conclusion, it is crucial to pay immediate attention to the growing issue of middle-class seniors being unable to afford assisted living and long-term care. Millions of seniors may not receive the assistance they require as they age in the absence of acceptable solutions, which might have profound effects on families and society as a whole.
Click here to read about this issue in full detail: https://www.gobankingrates.com/retirement/planning/retirement-warning-11-million-middle-income-seniors-assisted-living-crisis-decade/
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