One of the biggest gaps in retirement planning is long-term care. It’s not an easy topic to think about, but failing to plan for it can put significant strain on your finances and your family later in life.

Long-term care is not a question of if for many people, it’s a question of when. Planning ahead gives you more control, more options, and greater peace of mind.

What Is Long-Term Care?

Long-term care goes far beyond nursing homes. It includes assistance with everyday activities such as bathing, dressing, eating, or managing medications. These are services that traditional health insurance and Medicare typically do not cover on an ongoing basis.

Care can be provided in several settings, including in your home, assisted living facilities, memory care communities, or nursing homes. The type of care needed often evolves over time as health needs change.

The Real Cost of Long-Term Care

Long-term care can be expensive, and costs continue to rise each year. As of 2025, average national annual costs are approximately $65,000 for home health care, around $60,000 for assisted living, and more than $110,000 for nursing home care. These expenses can quickly drain retirement savings if they’re not planned for in advance.

Will Medicare or Medicaid Cover It?

Medicare generally covers only short-term rehabilitation, not long-term or ongoing care. Medicaid may help, but typically only after most personal assets have been spent down. Relying on government programs often means fewer choices and less control over the type and location of care you receive.

This is why proactive planning is so important.

Ways to Pay for Long-Term Care

There are three primary approaches to covering long-term care expenses:

One option is to self-fund, using personal savings and investments. This can work for some, but it carries the risk of significantly reducing retirement income or inheritance plans.

Another option is qualifying for Medicaid, which usually requires spending down assets and meeting strict eligibility rules.

The third option is long-term care insurance or a hybrid solution. Traditional long-term care insurance works similarly to health insurance: you pay premiums, and if care is needed, the policy helps cover the costs. While this can reduce out-of-pocket risk and help preserve savings, policies may have rising premiums and can be harder to qualify for as you age.

Hybrid Long-Term Care Solutions

Hybrid policies, often life insurance or annuities with long-term care benefits, offer an alternative. These policies provide funds for care if needed, and if care is never required, the policy typically pays a death benefit to heirs. This structure helps address the concern of paying premiums for coverage you may never use.

When Is the Best Time to Plan?

Planning for long-term care is often most effective in your 50s or early 60s. Premiums tend to be more affordable, health qualifications are easier to meet, and strategies can be better integrated into your overall retirement income plan.

Smart Long-Term Care Planning Tips

Effective planning starts with understanding your family health history and discussing expected income sources in retirement. It also involves deciding how much risk you’re comfortable self-funding versus insuring. Waiting too long can limit options, especially if health conditions arise.

The Bottom Line

Long-term care planning is about protecting your future choices. With the right strategy in place, you can safeguard your retirement, reduce stress on loved ones, and maintain control over how and where you receive care. The best time to plan is before you need it.

Important Disclosure

This content is for general informational purposes only and is not intended to provide specific financial, insurance, or tax advice. Variable annuities and insurance products involve fees, charges, and risks. Guarantees are based on the claims-paying ability of the issuing company. Withdrawals prior to age 59½ may be subject to IRS penalties, and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal.

Jonathan Viscounte is a Financial Planner with, and offers securities and investment advisory services through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial. LPLE and LPL Financial are not affiliated with Viscounte Financial.