Cost of Long Term Care
The high cost of receiving Long Term Care can erode the nest egg you've worked so hard to save. Understanding today's costs — and where they're heading — is the first step in protecting your retirement.
National Average Care Costs
Annual cost of care by type — these figures represent national medians and can vary significantly by location.
Major cities cost significantly more. Nursing home care in Boston and New York City exceeds $120,000 per year. Always check costs specific to your area when planning coverage.
Costs Vary Dramatically by State
Annual median costs for care vary widely depending on where you live.
| State | Private Nursing Home | Semi-Private | Assisted Living | Home Health Aide |
|---|---|---|---|---|
| New York | $146,274 | $141,073 | $50,220 | $57,200 |
| California | $117,804 | $100,375 | $54,000 | $59,488 |
| Florida | $108,770 | $97,820 | $42,000 | $46,904 |
| Texas | $78,475 | $57,579 | $45,540 | $45,760 |
Source: Genworth Cost of Care Survey. View all 50 states →
Who Pays for Long-Term Care?
Requires depleting nearly all assets to qualify
Out-of-pocket from savings, home equity, and family support
Covers only 20 days at 100% plus 80 supplemental days
The Sobering Reality
- •75% of single people and 50% of couples spend their entire savings within one year of entering a nursing home
- •70% of nursing home residents nationwide end up on Medicaid
- •7 in 10 Americans have made no plans for long-term care
Costs Are Rising Fast
The California Department of Insurance found that long-term care services have inflated at 5.1% annuallyover 30 years — significantly higher than general inflation (2.9%). A person age 58 today paying $150/day for care would need $520/day in just 25 years.
| Care Type | Today | Projected (10 years) | Projected (20 years) |
|---|---|---|---|
| Home Health Aide | $52,624 | $70,722 | $95,000+ |
| Assisted Living | $48,612 | $65,330 | $87,800+ |
| Semi-Private Nursing | $90,155 | $121,161 | $162,800+ |
| Private Nursing | $102,200 | $137,348 | $184,500+ |
Projections based on 5.1% annual LTC cost inflation rate per California Department of Insurance study.
Putting Costs in Perspective
Nursing home care costs about two years' worth of paychecks for an average American
Assisted living costs roughly the same as average annual mortgage payments on THREE houses
Home health care costs the same as average tuition for a four-year state college
Average total cost per person for a 3.3-year nursing home stay at today's prices
Average total cost for a married couple — and inflation could triple this in 30 years
Estimated cost of living to age 100 — a growing reality as life expectancy increases
What Does LTC Insurance Cost?
Premiums are based on your age at purchase, health, and coverage level. Rate differences between carriers range from 15% to 65% for basically the same policies — comparison shopping is critical.
| Age at Purchase | Annual Premium Range | Total to Age 90 |
|---|---|---|
| Age 50 | $2,151 | $75,296 |
| Age 55 | $2,745 | $90,582 |
| Age 60 | $4,350 | $126,137 |
| Age 65 | $6,906 | $172,647 |
Example based on a female applicant with $150/day benefit and 5% compound inflation. Spousal and health discounts can reduce these premiums by 20–40%.
Find Out What Coverage Costs in Your Area
We'll provide side-by-side cost comparisons from top carriers customized for your age, health, and location — all with no obligation.