The High Cost of Long-Term Care in 2026 — and 3 Ways to Protect It
If you’re turning 65 this year, I have the number for you: $135,000.
That’s not the price of a luxury sports car or a down payment on a beach condo. According to the latest Milliman Long-Term Care Index, that’s the average amount a 65-year-old needs to set aside now to cover their advanced long-term care expenses.
And let’s be honest, that number is scary.
To put it in perspective, data from the Federal Reserve’s Survey of Consumer Finances shows the average retirement savings of Americans ages 65 to 74 is exactly $200,000. If you get “rate” long-term care, you’re wiping out about 70 percent of your entire life savings just to pay for daily living assistance.
Why averages are deceiving
Here’s the frustrating thing about averages: there’s almost no average. Your actual cost could be zero, or it could be catastrophic.
Researchers at Boston College’s Center for Retirement Research recently crunched Milliman’s numbers, and the variation is huge.
1. The gender gap: Because women generally live longer than men—and are less likely to have a surviving spouse to provide free care—they pay more. The average cost for women is $171,000, compared to $98,000 for men.
2. Time lottery: About half of men and four out of ten women will never need paid care. Another large group will require less than a year of maintenance, keeping costs down. But if you fall into the 14% of women who need care for five years or more, the average cost explodes to $665,000.
3. Local penalty: Where you live matters and how long you live. The most expensive regions of care are concentrated on the West Coast and the Northeast, where costs can run twice the national average. If you live in the South-Central US, your dollar stretches a lot.
A way to protect yourself
The worst thing you can do is stick your head in the sand. Medicare does not cover extended long-term care, and federal Medicaid programs will only kick in after you’ve exhausted nearly all of your personal assets.
Here’s how you can start preparing today.
1. Buy insurance at the right time: If you’re in your 50s or early 60s, it’s time to price out long-term care insurance. Wait too long, and premiums can become unaffordable—or worse, a sudden health problem could disqualify you from paying entirely. You can read more in our guide to who really needs long-term care insurance.
2. Talk to your family: The Milliman report assumes that all care is paid for, but Boston College points out that families typically provide at least half of the caregiving hours. You need to have an honest, slightly uncomfortable conversation with your children or relatives about what they can and cannot handle.
3. Top up your savings: If you are going to pay for your care yourself, you need a realistic goal. If you live in an expensive area or have a family history of dementia, you need to save more than that first $135,000. Look into expanding health savings accounts if you qualify, as these funds grow tax-free and can be used for qualified medical expenses down the road.
No one wants to think about losing their independence. But hoping for the best is not a financial strategy. The sooner you look these numbers in the face, the more control you will have over your future.
