November 2026 | Long-Term Care Awareness Month
The Real Cost of Long-Term Care: Planning for More Than Money
We spend years preparing for retirement: saving, investing, and thinking about how we'd like to spend our time. But one important question can be easy to overlook: What happens if we, or someone we love, need help with everyday life?
Long-term care doesn't necessarily mean moving into a nursing home. It can include assistance with bathing, dressing, meals, mobility, or other daily activities—at home, in a community setting, or in a care facility.
During Long-Term Care Awareness Month, we're taking a closer look at what care can cost, what families often overlook, and why planning ahead is about more than money.
Long-Term Care by the Numbers
The cost of care depends on the type of assistance needed, how frequently it's needed, and where it's provided. The national median annual costs below illustrate how different care arrangements can affect a household's financial picture.
| $74,400Assisted living per year |
$80,080In-home nonmedical care per year* |
$129,575Private nursing home room per year |
Source: CareScout 2025 Cost of Care Survey, National medians, https://www.carescout.com/cost-of-care, 2025.
*In-home care assumes 44 hours per week, 52 weeks per year.
What Does Care Actually Cost?
Many families assume receiving care at home will always be the least expensive option. But the total cost depends on how much assistance is required. Even part-time help can become a meaningful recurring expense.
Chart 1: National Median Annual Cost of Care
Assisted living $74,400
In-home nonmedical care* $80,080
Nursing home, semi-private room $114,975
Nursing home, private room $129,575
2025 national medians; *44 hours per week. Source: CareScout 2025 Cost of Care Survey, National medians, https://www.carescout.com/cost-of-care, 2025.
Closer to home: The 2025 median annual cost of assisted living was $64,566 in Iowa and $74,628 in Illinois, compared with $74,400 nationally. Costs can vary considerably even within a state.
Three Things Families Often Overlook
1. Medicare generally doesn't cover ongoing custodial care.
Medicare may cover certain qualifying skilled nursing or rehabilitation services, but it generally doesn't pay for ongoing assistance with activities such as bathing, dressing, or eating. Learn what Medicare does and doesn't cover.
2. Caregiving affects the whole family.
Spouses, adult children, and other loved ones may help coordinate appointments, provide transportation, manage household needs, or assist with everyday tasks. That commitment can affect time, work, relationships, and emotional well-being—not just finances.
3. A plan isn't the same thing as an insurance policy.
Long-term care planning may include reviewing savings and retirement income, exploring insurance options, understanding potential public benefits, updating legal documents, and discussing personal preferences. The right combination depends on your circumstances.
A Conversation Worth Having
If you needed additional care tomorrow, would your family know what you wanted?
- Where would you prefer to receive care?
- Who would help make decisions if you couldn't?
- How might an extended care need affect your retirement savings?
- Have you discussed your wishes with the people closest to you?
You don't need every answer today. Starting the conversation is an important first step.
Watch: Pulse Check | Long-Term Care
Long-term care raises questions about independence, financial preparedness, and the people we care about. Revisit our earlier Pulse Check conversation as you consider what planning ahead could mean for your family.
Continue Learning
Whether you're planning for your own future or helping a loved one navigate care decisions, these additional resources offer useful perspectives.
How to Pay for Long-Term Care: 8 Strategies
Explore several ways families may approach the financial side of future care. Note: This previously published resource should be reviewed for current tax and planning details.
How to Start the Family Caregiving Discussion
Practical ideas for beginning an important conversation about care preferences, roles, and expectations.
Planning for More Than Money
At Pulse Financial Services, we believe a thoughtful financial plan should consider both the milestones we look forward to and the challenges we hope to avoid. If you'd like to explore how a future care need might fit into your overall plan, we're here to help you start that conversation.
Start a Conversation with PulseHelping to Preserve and Grow Your Family's Wealth.
Sources: CareScout 2025 Cost of Care Survey (surveyed July–November 2025; published 2026); CareScout 2025 state cost tables; Medicare.gov: Long-Term Care. All cost figures are estimates or medians and are not guaranteed. The hypothetical illustration assumes a constant 3% annual increase; actual costs will vary. This material is for general educational purposes and is not individualized financial, insurance, legal, or tax advice. Consult qualified professionals about your circumstances. Additional required firm and broker-dealer disclosures should be included before publication.