Broker Check

Planning for Long-Term Care

June 15, 2023

If you are in your 40’s, 50’s, or even 60’s and healthy, long-term care may feel irrelevant. After all, there’s still time right?

Maybe not.

Here are a few common assumptions…or let’s call them potential blind spots:

  • Medicare will pay for my long-term care expenses.
  • My children will take care of me; I won't need long-term care.
  • We can gift away our assets quickly so we can qualify for Medicaid.

According to the National Association of Insurance, the average annual cost of nursing care is $90,000, assisted living is $48,000, and home care is $34,000. If you are under age 70 or haven't had a friend, family member, or someone you know need long-term care, it's probably not on your radar.

Here are some important facts to consider:

  • Medicare does not pay for long-term care. Medicaid only steps in when you become financially destitute.
  • Long-term care expenses can erode a lifetime of savings.
  • Children are often incapable of assuming care duties.
  • Long-term care premiums can and probably will increase. According to the American Association for Long-Term Care Insurance, annual rate increases are generally 2-4% in your 50's and 6 -8% in your 60's.

The bottom line, the expense could become a reality, and if your assets cannot cover your need, then insurance may be a viable option.  

One strategy is to look at your budget and add the cost of care while removing some offsetting lifestyle expenses you may have to sacrifice. Next, calculate whether your retirement can generate the income you will need over time.

I will admit that over my career, I have had more reactive discussions about long term care than proactive ones. It’s an easy to put off to “one day” in the future. Typically, the earlier you plan, the more options you have.

If you want to talk more about your specific long-term care needs and how it fits into your financial plan, please reach out and let's schedule a time to talk.


Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Stonegate Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Any opinions are those of Stonegate Financial and not necessarily those of Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.  The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. 

These policies have exclusions and/or limitations. The cost and availability of Long-Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long-Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.