Long-term care (LTC) is one of the biggest financial risks in retirement. The reality is that many retirees either don’t have LTC insurance or find it unaffordable. If that’s you, don’t panic—there are practical strategies to help you prepare and preserve your financial security.
Why This Matters
The cost of long-term care can be staggering:
- Home health aide: $5,000–$6,000 per month1
- Assisted living: $5,900 per month on average2
- Nursing home: $9,555–$10,965+ per month3
Without insurance, these expenses can quickly erode savings. But with proactive planning, you can reduce risk and maintain control.
1Genworth/CareScout Cost of Care Survey, 2024 — National median hourly home health aide cost of $34 (monthly equivalent $5,000–$6,000).
2Genworth/CareScout Cost of Care Survey, 2024 — National median assisted living cost of $5,900 per month.
3Genworth/CareScout Cost of Care Survey, 2024 — Nursing home semi-private room: $9,277/month; private room: $10,646/month.
1.Understand Your Risk
Know the statistics: About 70% of people over 65 will need some form of long-term care.1Assess family health history: Conditions like dementia or mobility issues increase likelihood. Evaluate your support system: Do you have family nearby who can help? If not, professional care may be necessary.
1Retirement Living, long-Term Care Statistics: Trends & Insights, 2025 — About 70% of people over age 65 will need some form of long-term care.
2. Build a Dedicated Care Fund
- Create a ‘care bucket’: Set aside a portion of savings specifically for future care needs.
- Use conservative assumptions: Plan for at least 2–3 years of care costs.
- Consider investment strategy: Keep this fund in low-risk, liquid assets for accessibility.
3.Leverage Home Equity
- Downsize: Selling a larger home can free up equity for care expenses.
- Reverse mortgage for cash flow needs: For homeowners, this can provide income without selling.
- Home modifications: Invest early in aging-in-place upgrades to delay or avoid facility care.
4. Explore Community Resources
- Local programs: Many counties offer subsidized home care or adult day services.
- Faith-based and nonprofit organizations: Often provide volunteer support for errands and companionship.
- Area Agency on Aging: A great starting point for free or low-cost services.
5.Consider Hybrid Solutions
- Life insurance with LTC riders: If you have existing policies, check if riders can be added.
- Annuities with care benefits: Some products offer enhanced payouts for care needs.
6. Strengthen Your Support Network
- Family conversations: Even if relatives live far away, discuss roles and expectations.
- Legal documents: Ensure you have a healthcare proxy and power of attorney in place.
- Professional help: Consider a care manager to coordinate services when needed.
7. Stay Healthy
- Exercise regularly
- Eat a balanced diet
- Stay socially engaged
- Schedule preventive health screenings
Action Plan
- Calculate potential LTC costs based on your location.
- Allocate funds or identify assets (home equity, investments) for care.
- Update estate and healthcare documents.
- Research local resources and create a care roadmap.
- Review annually and adjust as needed.
Bottom Line
Not having LTC insurance doesn’t mean you’re unprotected—it means you need a proactive plan. By setting aside funds, leveraging assets, and building a support network, you can maintain independence and financial stability throughout retirement.
Take the first step today—give us a call to discuss your options and start building a plan that works for you.
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