Long-Term Care · Cost Analysis

The real cost
of care

Show clients, in plain numbers, how likely long-term care is — and what it could cost. From there, the funding conversation writes itself: how much to self-fund, how much to insure.

Prepared for

Prepared by

Date

The Setup

Who are we planning for?

Person 1

Age

Sex

Person 2

Age

Sex

Care setting

Location

Assumptions

Care begins at age84

Years of care3 yrs

Annual cost today$70,800

Care cost inflation5.0%

The survey's 30-year inflation benchmark is 2.54% (general CPI). But care costs are climbing faster — from 2023 to 2024 it recorded +10.0% for a private nursing room, +11.2% semi-private, +6.4% home health aide, and +0.9% assisted living. We default to 5% as a middle ground.

Growth rate for set-aside5.0%

Lifetime probability of needing paid care: women 51%, men 39% (HHS/ASPE). Care costs are 2024 averages from the Federal Long Term Care Insurance Program Cost of Care Survey (illumifin), shown by metro region.

The Numbers

70%

To self-fund both, set aside today

—

Person 1 — if care is needed

—

Person 2 — if care is needed

—

Projected cost of care

The real costof care

Who are we planning for?

The real cost
of care