Retiring early is a dream for many; it may also be on your mind. When you retire early, it offers the freedom to pursue personal interests, travel, or simply enjoy a more relaxed lifestyle. However, achieving this goal requires meticulous planning to ensure financial security throughout your extended retirement years.

One critical aspect often overlooked is the potential need for long-term care and the role of Long-Term Care Insurance in safeguarding your assets and independence.

Start By Understanding Future Long-Term Care Needs

As life expectancies increase, the likelihood of requiring assistance with daily activities—such as bathing, dressing, personal hygiene, or managing medications—also rises. The U.S. Department of Health and Human Services estimates that over half (56%) of Americans turning 65 today will develop a disability serious enough to require long-term services and support. Women typically need care longer than men, although as men take better care of themselves, they are bound to catch up with women.

The costs associated with long-term care can be substantial. For instance, the median cost of in-home care, based on a 44-hour week, is over $5000 a month and, in twenty years, is projected to be over $11,000.

The base cost of an assisted living facility averages over $4500 a month today, but surcharges will add around $2000 a month. A private room in a nursing home costs over $9,400 per month. These costs are also increasing every year and vary depending on your location and the type of servcies you will erquire

How Much Does Long-Term Care Services Cost Near You?

Without proper planning, these expenses can quickly deplete your retirement savings, potentially jeopardizing your financial independence. This is why thinking about long-term care usually is best before you retire.

Role of Long-Term Care Insurance

The problem is health insurance, including an employer's plan or Medicare and any Medicare supplement you will have in the future, only pays for short-term skilled care, leaving the responsibility in the hands of your family and finances.

Long-Term Care Insurance will pay for all levels and types of long-term care, including at home. This includes care provided in various settings in addition to your home, like assisted living or memory care, in addition to a nursing home.

How Does Long-Term Care Insurance Differ From Other Types Of Insurance?

By obtaining Long-Term Care Insurance, you can safeguard your retirement savings and income against the escalating costs of care, preserving access to high-quality services while maintaining financial security and protecting your lifestyle—as well as your spouse's.

Matt McCann, a nationally recognized expert in long-term care planning, emphasizes the importance of considering LTC Insurance as part of your retirement strategy.

Long-Term Care Insurance provides financial security by covering the high costs associated with long-term care service. This protection ensures that your savings and assets are preserved for other retirement needs.

However, McCann emphasizes that an LTC policy is more than just about protecting your 401(k); it is about family.

Too many people forget that when you need long-term care in the future, your spouse or adult children will handle everything whether they are prepared or not. With an LTC policy not only will they have guaranteed tax-free benefits tio pay for their choice of quality care, they will have the time to be fmaily instead of attempting to be caregivers.

When to Purchase Long-Term Care Insurance

Timing is crucial when it comes to purchasing LTC Insurance. Premiums are more affordable when you are younger and in good health. Most people acquire an LTC policy between the ages of 47-67. However, because of medical underwriting, your health allows you the most affordable options.

What is Underwriting in Long-Term Care Insurance?

Another alternative is a hybrid policy that combines life insurance with long-term care benefits. McCann explained that these policies can be more expensive but offer the advantage of providing a death benefit if long-term care is not needed.

Importance of Comprehensive Retirement Planning

In addition to long-term care considerations, early retirees should address several other critical aspects to ensure a secure retirement:

• Healthcare Coverage: Medicare eligibility begins at age 65. If you retire before this age, you'll need to secure alternative health insurance to cover medical expenses.
• Income Sustainability: Calculate your expected retirement expenses and ensure that your savings, investments, and any other income sources can sustain your lifestyle over the long term.
• Social Security Benefits: Claiming Social Security benefits before your full retirement age can reduce monthly payments. Consider the long-term impact of early claiming on your retirement income.
• Estate Planning: Establish or update your will, power of attorney, and healthcare directives to ensure your wishes are honored and your assets are distributed according to your preferences.

Retiring Early Requires Planning

Retiring early offers numerous opportunities but presents unique challenges requiring careful planning. Incorporating Long-Term Care Insurance into your retirement strategy can provide peace of mind, knowing that you are protected against the high costs of long-term care.  

Planning for long-term care is not just about financial preparation and preserving your legacy. It's about ensuring you have choices and control over your future care needs without burdening those you love.

There are several types of LTC Insurance options, and LTC News reviews the top choices available in 2025 - Best Long-Term Care Insurance Companies: 2025 Provider Guide.

McCann represents the top-rate insurance companies that offer long-term care solutions. His innovative approach enables clients to consult with him via phone while viewing his computer screen, making the education, exploration, and selection of options convenient and transparent.

You can get free and accurate quotes from all the top companies, along with professional recommendations -  Free and Accurate Quotes.

Media Availability

McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care. Contact McCann through his website for information.