Long-Term Care Cost Projection
Project the future cost of long-term care (nursing home, assisted living, in-home care) and estimate how much you need to save to cover it.
The Long-Term Care Reality The U.S. Department of Health and Human Services estimates that 70% of people turning 65 today will need some form of long-term care. The average duration of care is about 3 years, but 20% of people will need care for 5+ years.
2024 Median Annual Costs (United States)
- In-home care (home health aide): $61,776/year
- Assisted living facility: $64,200/year
- Nursing home (semi-private room): $104,025/year
Source: Genworth Cost of Care Survey 2024.
Medical Inflation Long-term care costs historically inflate at 3–4% per year — faster than general inflation. Using a conservative 3.5% medical inflation rate is recommended.
Future Cost Formula Future annual cost = Current cost × (1 + inflation rate)^years until care starts Total care cost = Future annual cost × care duration Savings needed today = Total cost ÷ (1 + investment return)^years (discounting back)
Example Age 55 today, expecting care at 80 (25 years), nursing home for 3 years, 3.5% inflation. Future annual cost = $104,025 × (1.035)^25 = $232,890/year Total care cost = $232,890 × 3 = $698,670 Savings needed now at 6% return = $162,500