Childless couples have additional needs to consider

Question: What are the chief concerns of couples without children as they prepare for retirement and old age?

Answer: The chief concerns deal with planning a future that will not include adult children to give you a helping hand — physically, emotionally or financially — as you age. One issue would be assigning decision-makers to act on your behalf in the event that both persons become unable to make decisions regarding finances and property. Another would be deciding how your assets will be distributed when one (or both) of you passes away. You must also plan for unexpected events like long-term care needs.

Q: If you don’t have the option of moving in with your adult children or having an adult child care for you, how does that change your financial planning?

A: You need to understand how health care costs play out in retirement in a general sense. More specifically, you should know how Medicare benefits work and evaluate your need for long-term care insurance. Then, you can apply this information to your own unique set of circumstances. A financial adviser can help examine the situation, pro­ject costs (to the extent possible) and recommend strategies to help enhance savings options and potentially reduce expenses in retirement.

Q: Without the fallback of children to help care for you, do you need more insurance and savings to assure you will be cared for in old age?

A: More and more Americans are turning to long-term care insurance as a way to help prepare for what could be excessive costs of care in the years to come. Realistically, you probably won’t find a policy that will insure all expenses you may incur with a nursing home stay or other form of long-term care. The right policy can, however, help offset a significant portion of the costs. These costs are based on age as well as a number of health-related factors. There are certain situations involving pre-existing conditions where coverage is not available. It is an investment worth considering to protect your long-term financial security.

Q: If we don’t have enough money to pay for nursing home or assisted living, what are our options? Is there government assistance available?

A: Services, such as nursing home stays and in-home care, are not typically covered by a traditional health insurance policy or Medicare. Medicaid is a state and federal government program that pays for certain services and nursing home care for older people with lower incomes and limited assets. Eligibility and services covered vary from state to state. In most cases, eligibility is based on income and personal assets.

Q: What can you do to make sure the surviving spouse of a couple without children is well taken care of after the death of one spouse?

A: You should consult experts to create a comprehensive estate plan. A financial adviser can help you and your spouse or partner make plans for the handling of your estate. In conjunction with legal and tax advisers, who understand state and federal tax and estate planning laws, you can take steps to ensure that you both have sufficient means to live well after the other passes and that your mutual wishes are respected regarding the legacy you leave.

Q: What should you do now to make sure your wishes are carried out in terms of medical care, end-of-life care and distribution of your assets?

A: A comprehensive estate plan would include a living will — also called an Advanced Health Care Directive. It specifies your wishes in the event of an incapacitating illness and enables your assigned designee to make decisions about your health care on your behalf. It also specifies how and to whom your assets will be distributed when one or both of you pass away. The estate plan can include strategies for giving financial gifts before or after death as well as create avenues for charitable giving, if you don’t plan to leave a significant amount of your assets to family.