By Dalton Atchison
If you have significant retirement savings already, you may not be overly concerned with the cost of healthcare as you age. But what if you need long-term care? Long-term care can quickly drain available family resources, even when those resources are plentiful.
In some cases, that may mean you run out of funds to cover care. In other instances, it might mean the wealth you’d hoped to pass down to heirs could be greatly reduced.
The good news is that with proactive planning, you may be able to shield your wealth while still providing for your own care or that of a loved one. Take a closer look at a few key strategies.
Planning for Healthcare Costs
When creating retirement plans and withdrawal strategies, many people factor in the rising cost of living. But for some, healthcare costs are an afterthought.
That’s largely because so many pre-retirees greatly underestimate the cost of medical care in retirement. The 2026 Milliman Retiree Health Cost Index estimates that a healthy 65-year-old woman retiring in 2026 could have as much as $340,000 in remaining lifetime medical expenses.
For a healthy 65-year-old man retiring in 2026, those remaining medical costs could total up to $297,000. The discrepancy is due to the fact that women live longer than men on average.
Working with an advisor to stress-test your portfolio against different health scenarios can be helpful. From there, you can get an idea of what may need to change.
Choosing Long-Term Care Insurance
It’s not unusual for nursing homes to charge $10,000 per month or more. When you have a long-term care insurance policy, you pay a premium each month. If you do need long-term care in the future, the policy covers it.
Traditional long-term care insurance policies have one major downside, though: if you never end up needing long-term care, the premiums you paid are lost.
That’s why many families have been turning to hybrid long-term care insurance policies. These policies cover long-term care if you need it, but if you die without needing long-term care, your family receives a death benefit.
With either type of long-term care insurance, your premiums may rise if you wait too long to seek coverage. It’s generally wise to purchase a policy in your early 50s to early 60s. Premiums tend to rise sharply if you get a policy after you turn 65.
Shielding Heirs
Many people who have accumulated significant wealth hope to one day pass it on to their children and other relatives. But in the absence of a clear plan, long-term care could use up all of your savings.
Long-term care insurance is often one of the best ways to shield heirs from the impact of medical costs. Irrevocable trusts can be useful as well, especially if you’re worried about nursing homes or Medicaid trying to recoup money spent on your care. In an irrevocable trust, assets are typically shielded from creditors, and they bypass the probate process.
Each family’s situation is unique. Before you rush to set up a trust, it’s important to sit down with an advisor and determine how the pieces of your retirement plan fit together.
Preserving Family Resources Starts With a Plan
Managing loved ones’ long-term care needs while also trying to preserve funds for heirs can be a challenge, but having a knowledgeable guide can make a significant difference. Mountain PEAK Wealth Advisors is dedicated to helping families like yours integrate Christian values with your finances. We aim to make financial planning accessible and straightforward, no matter the complexity of your situation.
If you’re ready to work with a Christian financial advisor who puts your best interests first, offers a personalized, fee-only approach, and integrates a values-driven perspective into every decision, I invite you to reach out. To schedule a meeting, call (260) 435-1200, get in touch online, or email jeff@mountainpeakwealthadvisors.com.
Frequently Asked Questions
How can I preserve my family resources from long-term care costs?
Planning ahead is a great way to help shield family resources from the rising cost of long-term care. Strategies may include building healthcare costs into your retirement plan, considering long-term care insurance, and evaluating estate planning tools such as irrevocable trusts when appropriate. Mountain PEAK Wealth Advisors can help you develop a personalized strategy that balances your healthcare needs with your goals for preserving wealth for future generations.
Is long-term care insurance worth it if I have significant retirement savings?
It depends on your financial situation, health, and legacy goals. Even affluent families can see their savings significantly reduced by extended nursing home or in-home care costs. Long-term care insurance—whether traditional or hybrid—may help offset those expenses and preserve more of your assets for your spouse, heirs, or charitable giving. A financial advisor can help determine whether this type of coverage fits your overall plan.
How can a financial advisor help preserve family resources while planning for long-term care?
A financial advisor can evaluate your retirement income, healthcare expenses, insurance coverage, investment strategy, and estate plan as part of a coordinated approach. Mountain PEAK Wealth Advisors helps families create values-driven financial plans that address long-term care costs while working to preserve family resources and support their long-term legacy goals.
About Dalton
Dalton Atchison, CFP®, CKA®, CRPC®, is an Associate Wealth Advisor at Mountain PEAK Wealth Advisors in Fort Wayne, Indiana, where he has served clients since 2017. As a Certified Kingdom Advisor® and University of Indianapolis alumnus, he specializes in making complex planning accessible while helping clients integrate their Christian values into prudent financial strategies. Outside of work, Dalton enjoys running and spending quality time with his wife, Emily, and their family.
