Hello, I was reading some articles about retirement and came across the concept of “retirement consumption gap” where people end up spending less than they can afford to during retirement. This is something I can totally relate to. One of the biggest cause for this is saving for the rainy day especially when you are no longer employed. This brings me to the main point of this post:
One of the biggest contributor to my (and probably most people’s) financial uncertainty is the long tail risk that comes with old age. I know many people who require partial care because of old age related illness (stroke, dementia, etc.). The risk is magnified for us as we will not have children and so will not have a big family based support system which means higher chances of needing home care or going into nursing home. Obviously these are all bad scenarios but probability of them occurring go up the older I will get. I don’t want to save for (or worry about) a long tail risk when I am in my 60s by not spending as much as I can afford to.
Enter long term care insurance products. I am a big believer in solid insurance products that can help me manage and plan for “worst case” scenarios even though there might be some cost attached to it. As such, I want to start looking into such insurance products to see if any of them would be suitable for me. I am pretty young but often it is worthwhile to consider such products at an early age. Also, I am planning to stay in Switzerland after retirement.
What about you? Have any of you looked into this or maybe even insured yourself? Would be great if you could share your research for the uninitiated.