A solid retirement plan has to account for the unexpected. Most of us know to worry about market downturns or living longer than expected. But the most likely—and potentially most costly—curveball you’ll face in retirement is needing care.
Roughly 70% of people over age 65 will require some form of long-term care, whether it’s help with daily tasks, part-time home health, or a stay in an assisted living facility. And the costs add up fast: nationally, home care now averages over $60,000 per year, while a private nursing room exceeds $100,000. Those numbers rise faster than inflation, and few portfolios are built to absorb several years of that spending without a plan.
Planning for care isn’t just about covering bills. It’s about maintaining control—deciding who provides your care, where it happens, and how it’s funded. Without that preparation, those decisions often fall to loved ones in moments of stress.
There’s no single right strategy. Some families choose to self-fund, earmarking a portion of their assets. Others explore hybrid insurance or annuity-based approaches that offer flexibility if care isn’t needed. Many also coordinate with adult children or advisors to ensure powers of attorney, healthcare directives, and funding sources are clear and accessible.
The takeaway isn’t to rush into a policy or product, but instead to treat care planning as a core part of your retirement strategy, not an afterthought.
If your current plan only prepares for market volatility or longevity, it may not be complete. The best time to address potential care needs is before they’re on your doorstep, when you still have time, health, and options on your side.
Now’s a good time to take a step back and ask:
Does your retirement plan expect the unexpected?