Most people spend years preparing for “the golden years.” They contribute to 401(k)s, pay down debt, and imagine a future filled with travel, grandchildren, hobbies, and freedom from work.
But long-term care is one retirement expense many people never fully prepare for. According to a 2025 analysis from the Center for Retirement Research at Boston College, about 15% of people age 65+ have long-term care insurance. However, studies consistently show that around 70% of people who reach age 65 will need some form of long-term care.
Yikes! That’s a big difference.
Nobody likes imagining themselves needing help getting dressed, recovering from a stroke, or moving into assisted living. Because of that discomfort, many families avoid the conversation entirely—until a health crisis forces them to confront it suddenly and emotionally.
What Is Long-Term Care?
Long-term care refers to ongoing assistance with activities of daily living (ADL’s) such as:
Bathing
Dressing
Eating
Mobility
Medication management
Cognitive supervision for conditions like dementia
Care can happen at home with caregivers, at adult day programs, as well as at assisted living facilities or skilled nursing facilities. Many people assume Medicare will cover these costs, but there are limits!
The Medicare Misunderstanding
Medicare generally covers short-term rehabilitation following a hospitalization. It does not typically pay for extended custodial care—the kind of ongoing help many aging adults eventually need.
A person may spend decades responsibly saving for retirement only to discover that a prolonged illness, memory disorder, or mobility issue can quickly drain those savings.
Why This Risk Matters More Than Ever
People are living longer than previous generations. While that is good news in many ways, longevity also increases the likelihood of needing assistance later in life.
At the same time healthcare costs continue to rise and professional caregiving is increasingly expensive. Families are smaller and often geographically spread out, and adult children are busy balancing careers and raising their own families.
In other words, many retirees may eventually need care at exactly the moment family support is hardest to provide. Case in point, just today I got a call from a policyholder’s son, asking for a referral to a non-medical home health service. His mother had just been discharged from the hospital, and his family was headed to Alaska on a trip that had been planned for months.
The Financial Impact Can Be Severe
According to recent national surveys by CareScout / Genworth Cost of Care Survey, Assisted Living can cost up to $6,300 per month depending on your state, while a Nursing Home can cost over $11,300 per month.
For couples, the impact can be especially devastating. One spouse’s care needs can dramatically alter the financial security of the healthy spouse.
Without a plan, families are often forced into difficult choices, such as spending down retirement savings or selling assets. Some people are fortunate to have family upon which they can rely, but this can create a different kind of burden.
The Best Time to Plan Is Earlier Than You Think
One of the biggest mistakes people make is waiting too long. By the time health problems emerge, insurance options may not be available.
For many people, the ideal time to begin discussing long-term care planning is in their 50s or early 60s—before a crisis occurs, and before premiums increase.
Final Thoughts
Long-term care may not be the most comfortable topic, but ignoring it often makes the eventual consequences far more painful.
If you would like to discuss options, please contact me.