” ...these folks are approaching the age when more and more will need tons of healthcare AND long term care.
A 76 year old man I know was diagnosed with Parkinson’s about 18 months ago. He is blowing through about $9k/month on assisted living, nursing, etc. Has a good pension, owns three modest homes and is now selling the homes to keep up with the bills. His physical and financial condition is deteriorating rapidly.
My Mom was a teacher and had a decent pension. My Dad worked for the post office and had both health insurance AND a good pension.
My mom had dementia and we had to sell her home—which had been in the family for 147 years. She was in long term nursing care for more than three years.
She passed the week I completed her Medicare application. She died with $1,000 in her accounts. It cost nearly half a million dollars to care for her last years.
We are fortunate that she had the money. But selling her home on a beautiful piece of Vermont lake front broke my heart.
“A 76 year old man I know was diagnosed with Parkinson’s about 18 months ago. He is blowing through about $9k/month on assisted living, nursing, etc. Has a good pension, owns three modest homes and is now selling the homes to keep up with the bills. His physical and financial condition is deteriorating rapidly.”
Wow, in Germany he would almost certainly not be “blowing through” $9,000 per month.
In Germany he would have been paying into the Long-Term Care insurance (LTCI) system that covers a significant portion of costs for those with chronic illnesses like Parkinson’s.
While residents still pay out-of-pocket for “room and board,” the average monthly cost for a nursing home in Germany is roughly €3,248 (~$3,500). German law generally prevents the state from coming after a child’s income to pay for a parent’s care. While he might still need to use some assets, the rapid liquidation of three homes is highly unlikely because the state (via social assistance) often steps in to cover gaps if income and insurance don’t suffice.
In Poland it’s not as good - but the private nursing homes would be more in the range of $1,000 to $2,000. If he moved to a state-run home (Dom Pomocy Społecznej), he would pay up to 70% of his pension, with the local government covering the rest if his family cannot afford it. The cost of care is capped by law - there is a legal ceiling on what a resident pays for a state-run nursing home (Dom Pomocy Społecznej - DPS). By law, the resident pays no more than 70% of their income (pension). The remaining 30% of their pension remains in their pocket for personal needs. If the 70% does not cover the full cost of the bed, the local municipality covers the rest, not the resident’s savings