About 40% of those age 40 and older lack confidence that they will have the financial resource they need to pay for the care they will need as they get older. Confidence has varied since 2013: about a quarter lacked confidence in 2016 compared to about half in 2017 and 2018. There is no single government program devoted to long-term care costs, and while Medicaid does pay for long-term care, it will only do so after a person has exhausted most of their personal assets. Medicare does not cover long-term care at all, only short-term rehab after a hospital stay.
Between 2013 and 2020, only about a third of those age 40 and older say they have set aside money to pay for long-term care expenses like nursing home care, a senior community, or care from a home health aide. In 2021, the median monthly cost of a semi-private room in a nursing home was $7,908, the median assisted living facility cost $4,500, and a full-time home health aide cost $5,148.1 Many expect to rely on Social Security to pay for long-term care, but these costs far exceed the average monthly Social Security benefit.2
1 Genworth Financial. 2021. Genworth Cost of Care Survey. https://www.genworth.com/about-us/industry-expertise/cost-of-care.html
2 Social Security Administration. 2018. Fact Sheet: Social Security. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf