January 7, 2026
If you’re in your 50s or early 60s, retirement planning is likely top of mind. You’re thinking about your 401(k), Social Security, and maybe that dream vacation you’ve been postponing. But there’s one critical piece of the retirement puzzle that many people overlook until it’s too late: long-term care planning.
The reality is sobering: someone turning 65 today has a 70% chance of needing some type of long-term care in their future. Yet in conversations with clients over the years, I’ve found that most families don’t think about long-term care until they’re facing an immediate crisis—a parent’s sudden decline, a spouse’s diagnosis, or their own unexpected health event. By then, options become limited and costs can be overwhelming.
The Rising Tide of Long-Term Care Costs
Long-term care costs aren’t just rising—they’re accelerating at a pace that outstrips most families’ expectations. Between 2023 and 2024 alone, we saw significant increases across every care setting. Home health aide services jumped from $33 to $34 per hour, which translates to over $77,000 annually for full-time care. Adult day health care climbed from $95 to $100 per day. Assisted living communities now average $5,900 per month, up from $5,350. Perhaps most striking, a private room in a nursing home facility now costs approximately $10,646 per month—that’s nearly $128,000 per year.
These increases aren’t arbitrary. Care providers are facing mounting pressures that push costs upward: staffing shortages in an aging workforce, rising wages to attract qualified caregivers, increased operational expenses, and stricter regulatory compliance requirements. Meanwhile, reimbursement rates from government programs haven’t kept pace, creating a gap that’s ultimately passed on to families.
Why Waiting Costs More Than You Think
Here’s where the math becomes counterintuitive for many people: waiting to purchase long-term care insurance doesn’t save money—it dramatically increases costs.
Consider this scenario: A 55-year-old in good health might pay a certain premium for coverage. That same person at age 65 could face premiums that are double or even triple that amount. Why? Because long-term care insurance pricing is based on two critical factors: age and health status.
Every year you wait, you’re not just getting older—you’re rolling the dice on your health. A diabetes diagnosis, a heart condition, high blood pressure that requires multiple medications, or even a minor stroke can either make coverage unaffordable or render you completely ineligible for traditional long-term care insurance. We’ve sat across from too many clients who waited, thinking they’d “get around to it eventually,” only to find themselves unable to qualify for the protection they needed.
But there’s another factor many people miss: inflation protection. If you wait 10 years to purchase coverage, you’ll need to buy a higher benefit amount just to cover the same level of care in the future. The care that costs $5,900 per month today could easily cost $9,000 or more in a decade. So not only are you paying higher premiums due to your age, but you’re also purchasing coverage for inflated care costs. The financial impact compounds in ways that make waiting one of the most expensive decisions you can make.
The Peace of Mind That Planning Provides
When we work with clients on long-term care planning, we always ask: “What does peace of mind look like for you?” The answers vary, but common themes emerge. People want to maintain their independence and dignity. They don’t want to become a burden on their adult children. They want choices about where and how they receive care. They want to preserve the assets they’ve spent a lifetime building.
Thoughtful long-term care planning addresses all these concerns. Modern long-term care insurance offers flexibility that previous generations never had. Coverage typically includes home care, assisted living, adult day care, and skilled nursing facilities—giving you options as your needs evolve. Inflation protection features ensure your benefits keep pace with rising costs. And perhaps most importantly, you gain the financial buffer that allows you to make decisions based on what’s best for your health and wellbeing, not just what you can afford.
Finding the Right Coverage for Your Budget
One of the most common objections we hear is, “I can’t afford long-term care insurance.” But here’s the truth: not having coverage is what you can’t afford.
Our approach at our agency is to work within your budget to design protection that makes sense for your situation. We start by determining what premium you can comfortably pay annually. For some clients, that means structuring a policy with monthly or quarterly payments that fit into their retirement income planning. For others, particularly those in their peak earning years or who have received an inheritance or bonus, paying off a long-term care plan over 10 years—or even in a lump sum—makes more sense.
This is where hybrid long-term care options have become increasingly popular. These policies combine long-term care benefits with life insurance, offering a powerful safety net. If you need extensive care, the benefits are there to cover your costs. But if you’re fortunate enough to need little or no long-term care, your beneficiaries receive a tax-free death benefit. It’s a win-win that ensures your premium dollars aren’t “wasted” even in the best-case scenario where you never need significant care.
The Cost of Inaction
Let’s be clear about what happens without a plan. Nearly half of all long-term care expenses are paid out of pocket by families—depleting retirement savings, college funds, and inheritances. Adult children often become unpaid caregivers, sacrificing their own careers and financial security. Family dynamics become strained under the weight of caregiving responsibilities and financial stress.
Medicaid becomes the payer of last resort for many, but only after families have spent down virtually all their assets to qualify. That dream of leaving something for your children or grandchildren? It evaporates along with your savings.
Taking the First Step
If you’re reading this and you’re between 55 and 65, you’re in the sweet spot for long-term care planning. You’re likely healthy enough to qualify for favorable rates, and you have time to structure a policy that fits your budget and goals.
If you’re younger, don’t assume you have unlimited time. Health can change in an instant. If you’re older or have health conditions, don’t assume you’re out of options. There may still be solutions available, though your window is narrowing.
The question isn’t whether you’ll need to plan for long-term care—it’s whether you’ll plan proactively or reactively. The families we work with who have coverage consistently tell us the same thing: the peace of mind is worth every penny. They sleep better knowing they have a plan. They feel empowered knowing they’ll have choices. And they feel relief knowing they won’t burden their loved ones with impossible decisions.
Long-term care costs will continue rising. That’s a certainty. But whether those costs derail your retirement, deplete your life savings, or burden your family is still within your control—if you act now. Let’s have that conversation today, while you still have options and while protection is most affordable. Your future self will thank you.
Denise Gott, MBA, CLTC®, is CEO of ACSIA Partners LLC, the nation’s largest independent brokerage and industry leader with over 50 years’ experience specializing in long-term care insurance dedicated to helping families navigate the complexities of long-term care planning. Contact us for more information about protecting your retirement, your family and preserving your peace of mind.
In California, the company is known as xACSIA Partners Insurance Agency; in all other states, as ACSIA Partners.