Do you really need long-term care insurance in America? Here’s what the data actually says

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There’s nary avoiding it: the U.S. is rapidly aging.

In 2025, a record-breaking fig of Americans, 4.18 cardinal to beryllium exact, turned 65 years old, according to Milliman (1). For galore people, this milestone means they’re either approaching their Social Security claim, preparing for status oregon eligible for elder discounts.

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What astir radical this property neglect is the existent hazard of needing semipermanent care. According to a 2025 survey by Northwestern Mutual, lone 61% of U.S. adults expect to acquisition a semipermanent attraction lawsuit successful their elder years (2). But lone 42% of Boomers and 35% of Gen X'ers accidental they person planned financially for the possibility.

Unfortunately, the likelihood of needing semipermanent attraction is substantially higher. It’s besides exorbitantly expensive. Ignoring this hazard could beryllium 1 of the astir financially risky moves you tin marque successful retirement.

Here’s wherefore the information suggests this is an underappreciated hazard for American seniors.

There could beryllium 2 cardinal reasons wherefore galore seniors neglect the hazard of semipermanent care.

First, they mightiness not beryllium alert of the existent outgo of this signifier of aesculapian attention. According to Miliman’s 2025 Long-Term Care Index (LTC Index), the beingness outgo of semipermanent attraction for idiosyncratic aged 65 is $135,000.

That’s an mean estimate. The outgo is importantly higher for women ($171,000) and overmuch little for men ($98,000). Nevertheless, astir radical are looking astatine a six-figure drain connected their finances astatine a clip erstwhile they’re surviving connected a fixed income.

Second, galore American seniors could beryllium counting connected the incorrect fiscal information nett to screen them. Roughly 58% of Americans wrongly judge Medicare volition screen semipermanent attraction (LTC) expenses, according to the 2025 Nationwide Retirement Institute Long-Term Care survey (3).

The survey called this a “dangerous myth.”

“Medicare’s LTC sum is constricted and short-term, and does not supply the extended, day-to-day enactment aging Americans volition yet need,” according to the report.

Simply put, if you privation to debar the hazard of a six-figure meteorite hitting your status plan, you astir apt request a backup plan. Preferably, semipermanent attraction insurance.