Will Your Retirement Plan Be Ready for Long-Term Care Costs?
ReliableReads Editorial Team
Price Services Group
Most people preparing for retirement ask:
“Am I saving enough?”
Many of my clients don't ask the second question:
“How would I pay for long-term care if I needed it?”
For people in their 40s, long-term care may feel like a concern for much later. However, this can be an ideal time to begin planning—while there are still choices available.
The Medicare Misunderstanding
Many people assume Medicare will pay for long-term care. Generally, it will not.
Medicare may cover certain short-term skilled nursing or rehabilitation services when its requirements are met. However, it typically does not cover ongoing custodial care, such as help with bathing, dressing or eating.
That can leave a significant gap in a retirement plan.
According to CareScout, CareScout is especially well known for its annual Cost of Care Survey, the 2025 national median cost of assisted living was $74,400 per year.
Those are today’s costs. Someone in their 40s may not need care for decades, making the future expense potentially much higher.
Where Would the Money Come From?
No one can predict whether long-term care will be needed. The more useful question is:
If care were needed, how would it be paid for?
Would the money come from retirement savings, insurance, home equity or a combination of resources? Would family members be expected to provide care?
There is also a larger concern:
What could the cost of care do to the financial security of a spouse or family?
The risk is not limited to paying medical bills. It is also about protecting everything a family has spent decades building.
Why Begin in Your 40s? You have something valuable: TIME.
Planning does not mean predicting exactly what will happen or automatically purchasing a financial product. It means identifying a major financial risk before it becomes an emergency.
There is time to understand the potential costs, explore funding options and discuss personal care preferences with family.
Consider asking:
Where would I prefer to receive care?
Who would I expect to provide it?
How much could my retirement savings absorb?
What other funding options should I investigate?
How could several years of care affect my family?
You may not have every answer today. That is okay.
The goal is to begin the conversation while you still have choices.
Instead of asking only, “Will I have enough money to retire?” add one more question:
“If I need long-term care, will my retirement plan be ready?”
This article is for educational purposes only and is not individualized financial, insurance, tax or legal advice.