When most people think about retirement planning, they focus on savings goals, investment strategies, and Social Security timelines.
But there’s one major cost that slips under the radar for too many retirees—and it can quietly chip away at your nest egg if you’re not prepared.
It’s a type of expense that doesn’t show up until it’s urgent, and by then, it could be too late to adjust.
We’re talking about long-term care.
Unlike routine healthcare costs, long-term care refers to services that help with daily living—like bathing, dressing, or managing medications—if you become ill, injured, or disabled in retirement.
It’s not covered by Medicare, and it’s far more common than most people realize.
Here’s why you shouldn’t ignore long-term care costs…
According to the U.S. Department of Health and Human Services, 70% of people turning 65 today will need some form of long-term care in their lifetime. Yet very few have a plan for how they’ll afford it.
Here’s what you need to know:
- It’s not just for nursing homes. Long-term care includes in-home help, assisted living, and adult day care. These services can cost thousands per month—and last for years.
- Medicare doesn’t cover it. Many retirees mistakenly assume Medicare will foot the bill. It doesn’t. Unless you qualify for Medicaid (which has strict income and asset limits), you’ll be paying out of pocket.
- It can drain your retirement savings fast. A few years of care can cost more than $200,000. That’s enough to throw even the best retirement plan off course.
Three Smart Ways to Prepare
1. Look into Long-Term Care Insurance Early
Premiums are lower the younger and healthier you are when you apply—typically mid-50s to early 60s is ideal. Some hybrid policies even offer life insurance with a long-term care rider.
2. Consider a Dedicated Savings Fund
If insurance isn’t right for you, consider setting aside a specific portion of your savings just for long-term care expenses. Treat it like any other crucial part of your retirement portfolio.
3. Talk to Your Family Now
Have a conversation about your preferences and backup plans. If you’d prefer to stay at home rather than enter a facility, knowing that in advance helps your loved ones plan, too.
Bonus Tip: Don’t Wait
The biggest mistake people make is waiting too long to plan.
Whether it’s insurance, savings, or family coordination—starting earlier gives you more control, more options, and less stress later on.
