Why long-term care is a planning blind spot
Most people assume Medicare or their health insurance will cover long-term care. It won't. Medicare pays only for limited skilled care after a hospital stay, and health insurance excludes custodial care entirely. The everyday help many older adults eventually need — with bathing, dressing, meals, and mobility — is paid out of pocket until savings are largely gone and Medicaid takes over.
Because care costs have historically risen faster than general inflation, the bill decades from now can be far larger than today's prices suggest. This calculator projects that future cost from a current price you choose, so you can size up the problem and decide how to prepare — through dedicated savings, long-term care insurance, or a hybrid life/LTC policy.
How to use this calculator
- 1.Pick a current annual cost. Use the on-page ranges as a guide, or look up detailed local figures in Genworth's Cost of Care survey for the care setting you're planning for.
- 2.Estimate years until care. A rough planning horizon is fine — for many people this is the gap between their current age and their late 70s or 80s.
- 3.Choose a duration and inflation rate. Two to three years is a common planning baseline; 4% is a reasonable default for long-term-care inflation. Try a longer duration to stress-test a worst case.
- 4.Compare future vs. today's dollars. The gap between the two totals is the cost of waiting — and the case for planning early.
Frequently asked questions
Does Medicare pay for long-term care?+
Generally, no. Medicare covers only limited, short-term skilled care — for example, up to 100 days in a skilled nursing facility after a qualifying hospital stay, with cost-sharing after day 20. It does not pay for ongoing custodial care (help with bathing, dressing, eating, and other daily activities), which is what most long-term care actually involves. Those costs fall to you, long-term care insurance, or Medicaid once you've spent down assets.
How much does long-term care cost per year?+
It varies widely by setting and location. As national ballparks, full-time in-home aide care and assisted living commonly run in the $55,000–$80,000 per year range, while a private room in a nursing home often runs $110,000–$130,000 per year. High-cost states can be far above these figures. Genworth's annual Cost of Care survey publishes detailed state and metro-level numbers — use a figure that fits your area in the calculator.
Why does the calculator inflate the cost so much?+
Long-term care costs have historically risen faster than general inflation — often around 3–5% per year. Over a 20-plus year planning horizon, even a 4% annual increase roughly doubles the cost. That compounding is exactly why the future numbers look large, and why starting to plan (through savings, LTC insurance, or a hybrid life/LTC policy) decades ahead makes a meaningful difference.
How long do people typically need long-term care?+
It differs enormously by individual, but many paid care episodes last a couple of years. Roughly half of people turning 65 will need some paid long-term care during their lifetime; a smaller share need several years of intensive care. The calculator lets you model different durations so you can see both a moderate scenario and a longer, more expensive one.
Is long-term care insurance worth it?+
It depends on your assets, health, and family situation. LTC insurance can protect retirement savings from being consumed by years of care, but premiums can be significant and can rise over time. Buying younger (typically 50s to early 60s) locks in lower premiums and better health eligibility. Hybrid policies that combine life insurance or an annuity with an LTC benefit have become popular because they pay out even if care is never needed. This is a decision worth reviewing with a fee-only financial planner.
Related guides and tools
Rachel Kim
Editorial Lead, Life & Retirement
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-07-26
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