Long Term Care Plans
Long Term Care Plans
According to the U.S. Department of Health and Human Services, nearly 70% of adults turning 65 today will need some form of long-term care during their lifetime, with about 20% requiring care for more than five years. Long-term care refers to assistance with activities of daily living (ADLs), such as bathing, dressing, eating, toileting, transferring, and continence, or with cognitive impairments like Alzheimer’s disease or dementia. Care may be provided at home, in an assisted living facility, or in a skilled nursing facility, depending on the level of support needed.
The cost of long-term care can be significant. According to Genworth’s 2024 Cost of Care Survey, the national median monthly cost of in-home care services is around $5,500, while assisted living facilities average about $5,000 per month. For nursing homes, the expense rises substantially, with a semi-private room averaging $8,600 per month and a private room exceeding $9,500 per month. These rising costs underscore the importance of planning ahead, as long-term care expenses can quickly erode retirement savings if not properly accounted for in a financial strategy.
Long-Term Care Cost Estimates
The table below summarizes the national median monthly costs for various types of long-term care in the U.S., along with estimated cumulative expenses over a 3-year and 5-year period. These figures are based on the 2024 Genworth Cost of Care Survey and highlight the importance of planning ahead for potential long-term care needs.
| Type of Care | Avg. Monthly Cost ($) | 3-Year Cost ($) | 5-Year Cost ($) |
|---|---|---|---|
| In-Home Care (Home Health Aide) | 5,500 | 198,000 | 330,000 |
| Assisted Living Facility | 5,000 | 180,000 | 300,000 |
| Nursing Home (Semi-Private Room) | 8,600 | 309,600 | 516,000 |
| Nursing Home (Private Room) | 9,500 | 342,000 | 570,000 |
Prepared as a reference guide for retirement and long-term care planning.
Having a long-term care plan is a critical component of a well-balanced financial retirement strategy. A thoughtful plan helps protect retirement savings from being quickly depleted by the high costs of care, ensures access to quality services when needed, and provides peace of mind for both retirees and their families. With a plan in place, individuals can maintain greater independence, reduce the financial and emotional burden on loved ones, and preserve more of their estate for heirs. Conversely, not having a long-term care plan leaves retirees vulnerable to unexpected expenses that can reach hundreds of thousands of dollars, often forcing difficult choices such as liquidating assets, relying heavily on family caregivers, or depending on Medicaid. By addressing long-term care needs proactively, retirees create a more secure and sustainable retirement foundation.