Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

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How Much Will My Parents Really Need for Healthcare Costs in Retirement?
Retirement News, Healthy Living, Retirement Planning

How Much Will My Parents Really Need for Healthcare Costs in Retirement?

Did you know that a healthy 65-year-old couple that retired in 2020 will need nearly $300,000 to cover their retirement healthcare expenses? It’s no surprise that the National Council on Aging found that medical debt is one of the larger obstacles between older citizens and economic well-being.

Determining how much a parent or family member might need to save depends largely on their plans for the future:

  • Are they relying on you or other family members to provide care?
  • What’s the plan on paying for out-of-pocket medical costs?
  • Can they afford nursing home care?
  • Would they rather have in-home care as they age?
  • Do they have long-term care insurance to supplement Medicare coverage?

When extra care is needed

Those without long-term care insurance often start out relying on an unpaid family caregiver like you or another family member. Eventually, many need paid help — and that can be expensive.

According to Genworth's 2020 Cost of Care survey, the national average bill for a home health aide is $4,576 monthly, varying widely depending on location and needs. Though Medicare may cover part of the costs for at-home medical services, it doesn’t reimburse families for personal care such as medication reminders, bathing assistance, errands, shopping and transportation.

For individuals requiring more robust care options, assisted living is approximately $4,300 per month depending on where you live. This cost is predominately paid out of pocket, but financial assistance may be available for some. Nursing homes, on the other hand, are approximately $7,500 per month and are generally covered by Medicaid. Medicare typically covers up to 100 days of nursing home care, after which patients and their families are on the hook for further long-term costs.

A closer look at the numbers

According to the Kaiser Family Foundation, out-of-pocket health costs for older Americans covered by Medicare will consume up to 50% of the average Social Security income by 2030. Prescription drug costs remain a major issue, especially for the chronically ill. Retirees will also need to plan for common medical services that may or may not be covered — think dental care, hearing aids or glasses. And if they need hospitalization, the average cost of a three-day hospital stay could set them back $30,000.

New thinking on retirement healthcare options

The ongoing COVID-19 pandemic has been a huge wake-up call regarding the healthcare system. It’s important to know what the current healthcare options are, so you can help your parents choose wisely.

If you’re thinking about a healthcare cost game plan for your family, there may be some financing options that will benefit your parents, such as leveraging their home equity via a reverse mortgage. For more information, or to connect your parents or borrowers with a loan specialist in your area call Reverse Mortgage Funding LLC (RMF) at (888) 277-1567.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.7-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.

This information is intended for those who are interested in financial education. This information is provided for convenience only, and RMF make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and RMF is under no obligation to provide updated information. Materials or statements made by a third party and located or posted on the Site are those of the third party and do not necessarily reflect the official policy or position of RMF. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, or legal professional.  All mortgage origination services are provided by Reverse Mortgage Funding LLC, a state licensed mortgage lender, which is licensed or otherwise exempt from state licensing in the states in which it originates mortgage loans


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

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A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

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