Madison Troyer

Fri, May 30, 2025, 4:37 PM4 min read

• The U.S. Department of Health and Human Services says that around 57% of Americans will need long-term care at some point

• Most households have grossly underestimated the potential cost of that long-term care, and aren't aware that they will have to pay out of pocket for much of it

• The total cost of long-term care can be significant, extending beyond $100,000

Long-term care costs can be significant, extending well beyond $100,000, but experts tell CNBC that most households aren't prepared to handle the expense.

"People don't plan for it in advance," certified financial planner Carolyn McClanahan told the network. "It's a huge problem."

A 2022 report by the U.S. Department of Health and Human Services and the Urban Institute says that 57% of Americans turning 65 will develop a disability that is serious enough to require long-term care. The average cost of this long-term care is $122,400, the report said.

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On average, families will pay for 37% of the total cost of this long-term care out of pocket, with the rest covered by insurance and public programs.

"It's pretty clear [workers] don't have that amount of savings in retirement, that amount of savings in their checking or savings accounts, and the majority don't have long-term care insurance," Employee Benefit Research Institute strategist Bridget Bearden told CNBC. "So where is the money going to come from?"

Costs for long-term care vary widely, depending on where you live. However, data collected by Genworth and CareScout put the national average for a home health aide at $6,483 per month and $5,900 for a spot in an assisted living facility.

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Still, many people grossly underestimate how much long-term care could potentially cost them. A recent Employee Benefit Research Institute report found that "a significant proportion of future caregivers had not estimated LTC costs," and those who had expected them to remain under $50,000. Additionally, the report found that 43% of future caregivers expected Medicare to cover the costs of long-term care, and 29% expected Medicaid to foot the bill.