The hight cost of long term health care will drag down the quality of life for nearly two third of of today's retirees. It can cost $77,000 a year for nursing home ans $ 20,000 for inhome care , expenses that many people are ill prepared tp adsorb , said the center for retirement research at Boston College .
A new analysis shows that when the cost of health care and long term is included , 64 percent of retirees likely will be unable to maintain their retirement . the cost of health care will create such an unexpected hardship on unprepared retiring baby boomers that imperative to sound the warning now , said Alicia Munnell director of the center for retirement research .
The stock market colapse that has whacked retirement savings for millions of workers has focused attention on how poorly people are prepared for retirement expenses , Munnell said .
Health care cost rose nearly 7 percent last year after costing a total of $ 2.4 trillion in 2007 , about $ 7,900 per person , says the Nonprofit National Coalition on Health Care .
Options for paying for such care include relying on Medicaid , buying long term care insurance , selling the family home when long term care is needed or tapping into the value of the home through a reverse mortgage .
Medicaid is the most likely option for poorest retirees , Munnell said . People with higher incomes likely would prefer to buy insurance which would cost about $3500.00 a year if acquired at age 65 .
Delaying the purchase increases the price .
by the associated press
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