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Estimating LTC Needs

Use this calculator to estimate the cost of long-term care and see what it would take to attempt to save for this expense.

Estimating LTC Needs Definitions

Your current age
Your current age.
Where do you plan to retire
Choose the location that you expect to retire in. This will have an impact on the cost of your long-term care.
Annual cost of long-term care
The annual cost of long term-care in a nursing home with a semi-private room. To enter an amount for a location not in the provided list, or to enter your own long-term care cost estimate, choose "other" from the selection list.
Your long-term care begins in
Estimated number of years before your long-term care needs begin.
Years of long-term care
Estimated number of years you expect to need long-term care coverage.
Estimated LTC inflation rate
What you expect for the average long-term inflation rate for long-term care costs.
Amount currently allocated
Total you currently have saved toward your long-term care needs. This should not include other savings that you will need to fund your retirement, living expenses or other savings needs. Only include money specifically allocated to your long-term care needs.
Total monthly savings
Enter how much could you afford to put away monthly towards your long-term care costs. This calculator also assumes that you make your contribution at the beginning of each month.
Estimated Rate of Return
This is the annually compounded rate of return you expect from your investments. For the purposes of this calculator, taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments, you may wish to enter your after-tax rate of return. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2017, had an annual compounded rate of return of 8.3%, including reinvestment of dividends. From January 1, 1970 to December 31st 2017, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.

Proposed LTC per month
Another option to protect against your projected LTC expense would be to purchase a long term care policy. For this new policy we assume the term is equal to your LTC need and the method of compounding benefits and elimination period match the existing policy you have entered in the calculator.