How long would $1 Million last you in a Long-Term Care Situation?

Remember when a million dollars sounded like a fortune? When you thought people who had a million dollars lived in mansions with fancy sports cars and exotic vacations? Eventually as you got older and realized how expensive things were, you slowly came to realize that a million dollars really isn’t as impressive as it sounds, especially in the world of long-term care (LTC).

Let's compare 3 budgets, 3 geographical areas, and 3 levels of care.
Let’s compare 3 budgets, 3 geographical areas, and 3 levels of care.

We thought it might be interesting to examine a million dollars and see how far it would stretch in an LTC situation. We’ll also look at half a million dollars and a quarter of a million dollars. We’ll compare (according to Genworth’s Cost of Care Survey 2018) the most expensive state for LTC services, the least expensive state, and the national median cost. To note, according to the Insured Retirement Institute 45% of Baby Boomers have no retirement savings. And four in 10 believe Medicare will cover LTC costs.

# of Years in 3 types of facilities on 3 budgets

Louisiana (Least Expensive)

Budget Home Health Aide $36,608 Assisted Living Facility $42,600

Nursing Home Private Room $66,503

$250,000 6.83 5.87 3.76
$500,000 13.66 11.74 7.52
$1,000,000 27.32 23.47 15.04

National Median

Budget Home Health Aide $50,336 Assisted Living Facility $48,000

Nursing Home Private Room $100,375

$250,000 4.97 5.21 2.49
$500,000 9.93 10.42 4.98
$1,000,000 19.87 20.83 9.96

Alaska (Most Expensive)

Budget Home Health Aide $61,776 Assisted Living Facility $75,600

Nursing Home Private Room $330,873

$250,000 4.05 3.31 0.76
$500,000 8.09 6.61 1.51
$1,000,000 16.19 13.23 3.02

If you are someone who has a million dollars, you live in Alaska, and you require a nursing home, you can afford 3 years. If you have access to $250,000, you live in Louisiana, and you require a home health aide, you can afford almost 7 years. If you are somewhere in the middle, according to the national median, you have $500,000, and you live in an assisted living facility, you’re sitting pretty good at 10+years. For those who haven’t saved quite that much, or don’t wish to spend their entire savings, this is where LTC Insurance comes into play.

“45% of Baby Boomers have no retirement savings. And four in 10 believe Medicare will cover LTC costs.”

If you’re concerned about your savings, disturbed by the cost of those LTC options, or simply curious what your options are, speak to an LTC specialist today. They can help you plan for the future, protect your retirement investments, and give your family peace of mind knowing you can live where you need to be at the time you need it.