Long term care is needed by those who can't perform the basic tasks required to take care of themselves. This can include people suffering from a debilitating illness or chronic injury. The need for long term care can arise unexpectedly, often creating a large financial burden. This calculator can help you determine if you are financially prepared for this impending expense.
Long Term Care Calculator (Australian)
Long Term Care Calculator (Australian) Definitions
- Estimated daily cost
- This is your current estimated cost of long term care. According to the Genworth Financial 2016 Cost of Care Survey, the estimated median annual cost for a nursing home stay was $82,125 per year for a semi-private room. This is about $225 per day. The cost for a private room was $92,345 or $253 per day. Assisted living at home can cost more than $43,200 per year or $20.00 per hour for a home healthcare aid. All of these long-term care costs can be considerably higher in larger metropolitan areas.
- Years of care
- The number of years you expect to require long term care. The average stay in a nursing home is about 2.5 years, but can vary considerably.
- Inflation rate
- This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2015 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2015, the last full year available, the CPI was 0.0% annually as reported by the Minneapolis Federal Reserve. We will increase the cost of your long term care by this rate each year.
- Funds currently available
- The total amount that you have saved or invested that would be available to pay for long term care expenses.