Most of us picture retirement as a time of freedom—traveling, relaxing, and enjoying the rewards of a lifetime of work. But there’s one important piece of the puzzle many overlook: long-term care.
Planning for long-term care isn’t just for "someone else." In fact, about 70% of people turning 65 today will need some kind of long-term care in their lifetime. And yet, most people don’t have a plan.
What Is Long-Term Care, Really?
Long-term care is the support you might need if you're unable to do everyday tasks on your own—things like bathing, dressing, or eating—due to aging, chronic illness, or conditions like Alzheimer’s. That care might come from a family member, or it might require professionals in assisted living, a nursing home, or even at home.
Either way, care has a cost—both financial and emotional.
The Hidden Burden on Families
Even if a loved one provides your care, it doesn’t come free. Caregiving often means cutting back on work, reducing income, and experiencing stress. Research shows that unpaid caregivers—who provide 80% of long-term care—spend about 20 hours a week helping out. That’s like having a part-time job on top of their own lives.
Busting the Myths
Many people think Medicare will cover these costs. Unfortunately, that’s not the case. Medicare only covers short-term recovery—not the ongoing care many retirees need.
And while long-term care insurance is one option, it’s not the only one—and it’s not just a win for insurance companies. There are several ways to plan and pay for care, and the right solution often involves a combination of strategies.
The Financial Reality
Long-term care can be expensive:
- A semi-private room in a nursing home? Over $85,000 per year.
- Women typically need 3.7 years of care; men need 2.2 years.
- 1 in 5 people will need care for 5 years or more.
Despite this, fewer than 10% of people age 65 have insurance to help cover it.
So, What Can You Do?
The good news? You have options—and they’re not one-size-fits-all.
1. Understand the Risk
Start by recognizing that long-term care could be a part of your retirement. Ignoring it doesn’t make it go away.
2. Explore Funding Options
- Insurance: Long-term care insurance is most affordable in your 50s and early 60s.
- Self-funding: You can set aside specific savings for future care.
- Hybrid products: Some life insurance and annuity products come with long-term care benefits.
- Government programs: Medicaid is the largest payer, but requires financial qualification.
- Veterans benefits may help those who qualify.
3. Think Beyond the Numbers
Your decisions affect your family, your independence, and your peace of mind. Planning today can relieve a huge burden down the road—for both you and your loved ones.
4. Customize Your Plan
There’s no magic formula. The best plans often use a combination of insurance, personal savings, family support, and housing choices to cover potential needs.
A Final Thought
Long-term care planning isn’t about expecting the worst. It’s about preparing for life’s realities so that if and when you do need help, you’re covered—on your own terms. With the right plan in place, your retirement can still be everything you hoped it would be.