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A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, that's not necessarily what would happen. For one thing, most people don't run up nursing home bills of that magnitude. Also, you may be able to get government assistance to pay nursing home costs while keeping your IRA intact. Long-term care insurance and other financial tools offer other ways to pay a nursing home without emptying your savings. If you are concerned about paying for long-term care, consider discussing it with a financial advisor.
Long-term care costs unquestionably are eye-catching. In 2021, the Genworth Financial Cost of Care Survey pegged the average daily cost of a semi-private room in a skilled nursing facility at over $94,000 per year. At that rate, if both members of a couple required a similar level of care, $350,000 in IRAs would only cover about two years' worth of costs.
That doesn't mean your retirement account will meet a similar fate. According to the federal Administration on Aging, about 35% of people spend any time in a nursing home, and the average stay is about a year. People are more likely to use other types of long-term care, such as assisted living and in-home aides, that cost less.
