When an individual comes up with a retirement plan, he or she is concerned with risks such as how to invest, the risk of such investments and how they hold their value in the long run. One other risk that needs to be considered is the risk of a spending shock. Therefore, a retirement plan should consider the need to be prepared for long-term care as a person gets older.

While long-term care planning can be made more complicated because of the uncertainty that an individual will need it, it cannot be ignored. It is possible to spend up to $1 million on long-term care needs for mental or physical needs. As people live longer, the number of people who may need to use such services may increase. This is partially because older people may have fewer friends and family members to rely on to provide for their needs.

While an individual may receive assistance from government programs such as Medicare, it will not pay for long-term care. To prepare for any future care needs, an individual may need to purchase an insurance policy or set aside some investment income to cover additional expenses. Without such a plan, it may be possible to deplete household assets or face a scenario in which an individual must file for bankruptcy.

Living longer require an individual to plan for the possibility that an illness or another health issue will force that person to seek long-term care services. Talking to an estate planning attorney may help an individual decide ahead of time what will be done to cover those costs and make other key decisions.

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