What will it cost in 2030?

Since Boomers are thinking about caring for their aging parents, it raises an interesting question...How much does a year of LTC (Long-Term-Care) cost?  While you may not be surprised at the answer, I bet you can't guess what a year of LTC will be in 2030 (HINT...don't forget to adjust for inflation)....Dennis

Retirement Costs Three Times More than Boomers Perceive

June 20th, 2013  |  by Jason Oliva Published in News, Retirement, Reverse Mortgage

Americans aged 50 and older underestimate long-term care (LTC) costs during retirement by more than three times the actual cost, according to a Nationwide Financial consumer survey released this week.

While boomers expect LTC costs to be $78,923 annually, an estimated 37% of survey respondents failed to factor for inflation. 

By 2030—the year the last of the boomer will retire—the cost of a nursing home is expected to reach $265,000 per year, according to a Life and Health Advisor report cited by Nationwide.

When asked their definition of LTC, three in four (75%) of the 813 retired and non-retired Americans aged 50 or older with at least $150,000 annual income said they think of nursing home care or residential assisted living. 

Respondents correctly estimated that it currently costs on average about $66,949 for one year of nursing home care, however, when asked to think ahead to 2030, they still underestimated those costs by more than half—$111,507 vs. $265,000.  

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