The costs of Long Term Care, no matter what type of service, can be very high. The level of care you receive will play a large role in determining your LTC expenses.
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The median rate for a private nursing home in the U.S. is nearly $97,455 a year.1 In some states, those costs are over $150,000 annually.
In assisted living facilities, the average monthly expense is about $3,750 which usually includes rent and additional fees.1 However, if your care needs are higher, you may pay a considerably larger amount for this type of care.
While home care can be less expensive, it still adds up quickly. Bringing an aide into your home for 44 hours a week to help with dressing, bathing, preparing meals and other household chores can easily cost more than $49,192 a year, with the average hourly rate for a home health aide being $22 an hour. And around the clock home care can cost even more.1
Remember that these are average costs, and LTC expenses vary dramatically based on the region you live in. You can find the average annual and daily costs for nursing facility care, assisted living facilities and home care in your area by using our Cost of Care Calculator.
The amount you spend will also depend on the type of care you receive and the length of time you need it. Still, Long Term Care needs often evolve over time. In many cases, people will initially receive LTC services at home and eventually need to transition to a different care setting such as an assisted living facility or a nursing home. LTC expenses need to be extended when this type of situation occurs.
Since paying for care often means dipping into savings and retirement funds, a Long Term Care event can severely threaten a family’s ability to live a secure, comfortable future. Excluding the cost of facility care, care recipients pay an average of $14,000 a year in out-of-pocket LTC costs, while their family members pay another $8,000 per year.2
What’s more, the costs of care continue to rise with each passing year. If costs increase at 2.8 percent per year, the average annual cost of care could easily be over $200,000 in 30 years. 3
Not sure what the current costs of care are in your area?
Click here to see current and future costs of care.
What is your plan to pay for that care if you should need it?
1 Genworth 2017 Cost of Care Survey, conducted by CareScout, June 2017.
2 Beyond Dollars: The True Impact of Long Term Caring, Genworth Financial, April 2010.
3 Average annual rate of inflation over the past 30 years ending Dec. 31, 2014, using the Consumer Price Index for All Urban Consumers, Bureau of Labor Statistics, www.bls.gov
