The Financial Impact of a Long‑Term Care Event
A long‑term care event is one of the most significant financial risks retirees face — yet it’s also one of the least planned for. Nearly 70% of retirees will need some form of long‑term care during their lifetime. The challenge is not just the likelihood of needing care, but the financial and emotional impact it can have on a family.
Why Long-Term Care is So Costly
Long‑term care includes assistance with daily activities such as bathing, dressing, eating, and mobility. These services can be provided at home, in assisted living, or in a nursing facility — and costs vary widely.
- Home care: $60,000+ per year
- Assisted living: $55,000+ per year
- Nursing home care: $100,000–$150,000+ per year
These costs often rise faster than general inflation.
The Real Risk: Asset Drain
A long‑term care event doesn’t just affect the person receiving care — it affects the spouse, the family, and the legacy you intend to leave behind.
Without planning, families may be forced to:
- Liquidate investments at the wrong time
- Spend down retirement assets
- Reduce lifestyle spending
- Sacrifice legacy goals