THE MEMBER INSIDER

The Cost of Failing to Plan for Long-Term Care
By Brian Johnson, MBA, CLTC

An ounce of prevention is worth a pound of cure. Americans are living longer than ever before, and with that longevity comes a significantly higher likelihood of needing long-term care. Current data continues to show that approximately 70% of Americans turning age 65 will require some form of long-term care during their lifetime. As former First Lady Rosalynn Carter once said, “There are only four kinds of people in the world: those who have been caregivers, those who are caregivers, those who will be caregivers, and those who will need caregivers.” That statement is just as true today as it was decades ago.

The Reality of Long-Term Care Today
Most long-term care in the U.S. is still provided by unpaid family members, often in the home. However, longer life expectancies, increased cognitive diagnoses, and workforce shortages are placing greater emotional and financial strain on families. While many people prefer to age at home, doing so safely often requires professional support.

The Cost of Not Properly Planning
According to updated national surveys through 2025, the cost of long-term care remains substantial:
• In-Home Caregiver Services: Approximately $35 per hour (over $80,000 per year)
• Assisted Living Communities: Approximately $6,200 per month
• Adult Day Health Care: Approximately $95 per day
• Nursing Home Care (semi-private room): Over $111,000 per year

Beyond annual costs, the 2025 Milliman Long-Term Care Index estimates that today’s 65-year-old should plan for an average of approximately $135,000 in lifetime long-term care expenses, with women facing significantly higher projected costs due to longer claim durations.

Who Pays for Long-Term Care?
A well-constructed long-term care plan often combines multiple funding strategies, including personal savings and retirement income, traditional long-term care insurance, life insurance with long-term care or chronic illness riders, hybrid life or annuity policies with long-term care benefits, and Health Savings Accounts. It is important to stress test a retirement plan by modeling a long-term care event to understand how income, assets, and legacy goals may be affected.

Why Long-Term Care Insurance Makes Sense
Insurance can help transfer a portion of the financial risk associated with long-term care. For example, if a policy provides $6,000 per month toward care and total costs are $7,500 per month, the insurance benefit can be used first while the remaining balance is covered through Social Security income or retirement distributions. This approach can significantly reduce the long-term drain on assets. Since most policies require medical underwriting, planning earlier generally provides greater access to coverage options and more favorable pricing.

2026 Trends Shaping Long-Term Care
Some of the trends that are impacting long-term care in 2026 and beyond include aging in place supported by telehealth and remote monitoring technology, hybrid care models combining professional services with family caregiving, and ongoing caregiver workforce shortages increasing competition and cost pressure.

Have You Looked into Long-Term Care Insurance?
Your NYSUT membership provides you with access to discounted long-term care insurance plans from multiple highly rated insurance companies through New York Long-Term Care Brokers/Advisors Insurance Brokers. Plans are available for eligible individuals and include coverage for home care, assisted living, adult day services, nursing home care, and professional care coordination.

Brian M. Johnson, MBA, CLTC serves as the Director for New York Long-Term Care Brokers/Advisors Insurance Brokers.