Planning for Long-Term Care—Why It Matters and How to Prepare
Long-Term Care Should Be on Your Radar:
Most of us hope to stay healthy and independent as we age, but the truth is that nearly 70% of people turning 65 will need some form of long-term care during their lifetime. For women, the odds are even higher because we tend to live longer. Yet long-term care remains one of the least understood—and least planned-for—parts of retirement.
Over the past year, I’ve had countless conversations—both professionally with clients and personally with friends—about this very issue. Many are in the same stage of life I am, facing the reality that their parents suddenly need more care than anyone expected. Talking with aging parents about their lifestyle and future care needs is never easy, and the longer families wait, the harder those conversations become.
That’s why it’s so important to start early. Whether you’re thinking ahead about your own long-term care or navigating these questions with your parents, this blog offers ideas and starting points to make those conversations a little easier—and a lot more productive.
What Is Long-Term Care?
Long-term care includes a range of services and supports for people who need help with everyday activities like bathing, dressing, or eating. It’s not just nursing homes—it can also mean:
In-home care (aides, nurses, homemaker services)
Assisted living facilities
Adult day care centers
Skilled nursing facilities (nursing homes)
Key point: Long-term care is about quality of life—maintaining dignity, independence, and comfort as you age.
How Much Does Long-Term Care Really Cost?
The price tag depends on where you live, what type of care you need, and for how long. Nationally, the average costs are (as of 2024):
In-home care aide: ~$5,000/month
Assisted living facility: ~$4,500/month
Nursing home (private room): ~$9,000/month
Many families are surprised to learn that costs can exceed $100,000 per year if high levels of care are needed over a long period.
What Does Medicare Cover?
Medicare does NOT pay for most long-term care needs.
It may cover a short stay in a skilled nursing facility after a hospital stay, or limited home health care.
It does not pay for custodial care (help with bathing, dressing, eating, etc.) over the long term.
Medicaid may cover long-term care, but only if you have very limited assets and income.
Options for Paying for Long-Term Care
It is worth consulting a Retirement Income Professional when deciding on the following options.
1. Long-Term Care Insurance
Pays for care at home, in assisted living, or in a nursing home.
Policies are less expensive if purchased in your 50s or early 60s.
Premiums can be costly and may increase over time, but coverage can be tailored to your needs and budget.
2. Hybrid Life/Long-Term Care Policies
Combine life insurance or an annuity with long-term care benefits.
If you don’t use the long-term care benefit, your beneficiaries receive a death benefit.
Can provide flexibility and peace of mind.
3. Self-Funding
Using savings or investment income to pay for care.
Requires significant assets and careful planning.
4. Relying on Family
Many families provide informal care, but this can be physically, emotionally, and financially challenging.
5. Medicaid Planning
Qualifying for Medicaid typically requires spending down most of your assets.
Complex rules—consult a professional for guidance.
Steps to Prepare for Long-Term Care Costs
Have a conversation:
Talk with your family and certified financial planner about your preferences, values, and concerns.Get a cost estimate:
Research costs in your area. Use online calculators or consult a local resource.Explore insurance options early:
Premiums are lower (and approval is easier) when you’re younger and healthier.Consider a hybrid policy:
These can provide added flexibility for your estate plan.Update your financial plan:
Make sure your retirement savings and investments align with your long-term care strategy.Review and adjust regularly:
Your needs and the available products will change over time.
The Bottom Line
Long-term care planning is about protecting independence, dignity, and financial security. And it’s not just about you—it’s also about having honest conversations with your parents about their wishes and needs. The best time to plan is before care is needed. Being proactive now means you—and your loved ones—can face the future with more confidence and fewer worries..s below to make sure you’re using every advantage available to you!