The Conversation Nobody Wants to Have (But Everyone Needs To)
Here’s a statistic that should terrify every American: 75% of people age 65+ will need some form of long-term care before they die. But only 15% have actually planned for it.
AMERICANS NEEDING LONG-TERM CARE
75%
of those 65+; average duration: 3 years
The Real Costs of Long-Term Care in 2025
| Care Type | Annual Cost | Monthly Cost | 3-Year Total |
|---|---|---|---|
| Home Health Aide (8 hrs/day) | $45,240 | $3,770 | $135,720 |
| Assisted Living Facility | $56,250 | $4,687 | $168,750 |
| Nursing Home (Semi-Private) | $100,375 | $8,364 | $301,125 |
| Nursing Home (Private) | $116,400 | $9,700 | $349,200 |
Source: Genworth Cost of Care Survey 2025. Costs vary by state and facility.
Who Pays for Long-Term Care?
| Payer | % of LTC Costs | How It Works |
|---|---|---|
| Out-of-Pocket | 33% | Paid by individual/family |
| Medicaid | 42% | Asset spend-down required |
| LTC Insurance | 14% | Private insurance policy |
| Medicare | 8% | Very limited coverage |
Long-Term Care Insurance: Is It Worth It?
| Age Bought | Annual Premium | 3-Year Cost | Break-Even |
|---|---|---|---|
| Age 50 | $1,850 | $5,550 | ~2 months LTC |
| Age 55 | $2,600 | $7,800 | ~1.5 months LTC |
| Age 60 | $3,750 | $11,250 | ~1 month LTC |
💡 PRO TIP: The best time to buy LTC insurance is age 50-55. Premiums skyrocket after 60 and insurability drops.
Long-Term Care Planning Strategies
5 Ways to Prepare:
- Buy insurance at 50–55 if possible
- Build a dedicated LTC savings fund
- Consider hybrid LTC/life insurance products
- Learn Medicaid eligibility as a last resort
- Talk with family & legally document your wishes
Remember: 3 out of 4 retirees need some form of care. Failing to plan is the most expensive mistake you can make.
Have you planned for long-term care? What’s your strategy? Share your thoughts in the comments below.
About the Author: Robert Chen is a Retirement Finance Analyst at RetireMetric.com, specializing in long-term care strategy and financial security for retirees.
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