Rising Long-Term Care Costs Strain Families and Threaten Future Retirement Savings

Tamara Johnson left a six-figure executive role after caring for her mother and later her husband, estimating her family spent over $700,000 on their care. Nationwide, nursing home and adult day service costs have outpaced general price growth, with assisted-living fees soaring and home-care rates reaching a median of about $34 an hour. Caregiver wages have jumped from $17 to nearly $27 an hour over the past decade, adding to family bills.

Samir Shah of CareScout warns that roughly 70% of adults over 65 will require long-term care, yet few have saved for it. A shrinking labor pool, caused by pandemic-related departures and stricter immigration enforcement, threatens to deepen the shortage of qualified aides. As the U.S. Census projects more seniors than children in coming years, many families are turning to lower-rated facilities, borrowing against home equity, or leaving the workforce to meet care demands.