Lifetime Cost of Long-Term Care Rising Significantly

Long-term care is a near certainty for most Americans over age 65. As a result, the cost of all forms of these services has risen sharply in recent years. A new analysis shows that the total lifetime cost of long-term care for retirees now frequently exceeds $250,000, and for some, the expense is much higher.

Planning for this reality is essential. Without proactive financial and legal strategies, long-term care can quickly drain retirement savings, force families into debt, or result in inadequate care. The earlier families begin planning, the more options they have to manage costs and protect assets.

What Drives Long-Term Care Costs

Several factors contribute to the dramatic rise in long-term care expenses. Labor shortages in the caregiving field have driven wages up, increasing the cost of both in-home aides and residential care. Inflation has also played a role, affecting everything from rent at assisted living facilities to the cost of medical supplies and food.

On average, a private room in a nursing home costs over $100,000 per year. Assisted living often costs between $50,000 and $70,000 annually. Even hiring part-time help for in-home care can amount to several thousand dollars per month.

And these are just the direct costs. Additional expenses, including transportation, prescription medications, home modifications and care coordination, further increase the financial burden.

Why Many Families are Unprepared

One of the biggest challenges is that most people underestimate how much care they will need—or how much it will cost. Many assume that Medicare will cover long-term care; but, in fact, it generally does not.

Medicaid does cover long-term care, but eligibility requires that a person meet strict income and asset limits. Without advance planning, qualifying for Medicaid may involve spending down most of one's or a couple's savings. This process can leave spouses or other dependents financially vulnerable.

A long-term care insurance policy may help. However, these must be purchased well in advance and can be expensive. For many families, the best solution involves a combination of legal strategies and careful budgeting.

The Role of Elder Law in Long-Term Care Planning

An elder law attorney helps families prepare for long-term care costs through legal tools, such as:

• Medicaid planning strategies to protect assets and qualify for coverage when needed
• Irrevocable trusts to preserve wealth while meeting eligibility requirements
• Powers of attorney and advance directives to ensure that financial and medical decisions are managed responsibly during incapacity
• Long-term care planning documents that outline care preferences and family responsibilities
• Wills that provide for a supplemental needs trust for the unhealthy spouse should the healthier spouse die first

These tools not only provide financial protection but also give peace of mind, ensuring that trusted individuals make care decisions and that resources are available when needed.

Planning Ahead Means More Choices

The key to managing long-term care costs is planning ahead of a crisis. Families who prepare in advance have more flexibility, more funding options and a better chance of preserving independence and dignity.

Without a plan, decisions must be made under pressure, often resulting in costly mistakes, rushed facility placements and family disputes. An elder law attorney can provide the proper guidance to help families develop a long-term care strategy tailored to their specific needs, values and financial circumstances. Contact our elder law team in Berks County, Pennsylvania, to schedule your consultation and protect your savings from long-term care costs.

Key Takeaways

• Long-term care is increasingly expensive: The lifetime cost for many retirees now exceeds $250,000 per year.
• Medicare doesn’t cover long-term care: Without planning, families may face unexpected out-of-pocket costs.
• Most people are unprepared: A lack of planning can quickly deplete savings or force poor care decisions.
• Elder law offers protective strategies: Medicaid planning, trusts and legal documents help families preserve assets and ensure proper care.
• Early planning provides better options: Waiting too long limits choices and increases stress on caregivers and loved ones.

Reference: CNBC (May 17, 2025) "Long-term care costs can be a ‘huge problem,’ experts say. Here’s why"