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Intro
Hearing about the high costs of long-term care might make you want to bury your head in the sand, just like our ostrich friend above.
In much the same way, ignoring long-term care costs won’t make them go away. With limited government assistance, many families end up paying out-of-pocket for home care, assisted living, or nursing homes.
You’ve already saved for your home and your kids’ education. Now long-term care?
The good news? You’re already ahead of the game by educating yourself now.
Use the same acronym we use for long-term care (LTC) as a reminder to Learn about options, Talk with family, and Create a plan. Understanding the costs is the first step in all three.
Post jargon
assisted living: a type of residential care that assists with ADLs
home care: LTC provided at home
inflation: the rise in the cost of goods and services
inflation protection: LTCi benefit that adjusts for rising costs
LTC: long-term care
LTCi: long-term care insurance
nursing home: like a hospital, but with fewer doctors and for LTC
➡️ Explore all the LTC jargon
Current costs
As a heads up, you're about to see some big numbers.
The current national averages are:
- home care: $80k/year (44 hrs/week)
- assisted living: $74k/year
- memory care: $78k/year
- nursing home: $130k/year
Costs vary significantly by region, so use this cost calculator to learn about your area's current and estimated future costs.
Some notes on this calculator:
- Memory care isn't included, but the annual cost is usually a little less than nursing homes.
- Costs vary widely from state to state, often due to supply and demand. For example, a private room in a nursing home varies from $71k (Missouri) to $182k (Connecticut).
- You can adjust the number of in-home care hours at the bottom of the calculator:
Break time
If these numbers feel disheartening, pause for a minute to take a deep breath with Nicolas Cage.
Inflation rates
OK, so you know current LTC costs with a high degree of accuracy. To predict future LTC costs, start with a graph of historical LTC costs.
Over the past two decades, costs across all care settings have increased by an average of 4.5% per year.
However, the most recent 2024 survey reveals a significant jump in the cost of assisted living and nursing home care of roughly 10%.
| Increase From 2024 to 2025 | |
|---|---|
| Home health aide (in-home LTC) | 3% |
| Assisted living facility | 5% |
| Nursing home (private room) | 1% |
Wrap up
Long-term care costs are high, but by planning ahead, you can manage them and avoid unwelcome surprises. Just as an ostrich doesn’t really bury its head to avoid a lion, you don’t need to ignore the financial challenges of long-term care. Calculating costs and understanding insurance can help you prepare so that when the time comes, you’ll be ready.
