Get your free financial scoreSign inYour data on this device
Free to use. No account required.

How should I plan for long-term care costs in retirement?

Long-term care – help with daily activities at home, in assisted living, or in a nursing home – is one of the biggest wild cards in retirement, since a private nursing-home room can run six figures a year and Medicare generally doesn't cover extended custodial care. You have three broad options. Self-fund by earmarking a portion of your portfolio (often viewed as the late-life upturn in the spending 'smile'). Buy long-term care insurance or a hybrid life-insurance/LTC policy, ideally in your late 50s or early 60s when it's more affordable and you can still qualify. Or rely on Medicaid as a last resort, which requires spending down most assets. Many people blend self-funding for shorter needs with insurance for catastrophic ones. Decide your approach before your 60s, since waiting raises both cost and the odds of being declined.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures