Long-term care is something everyone should consider when approaching retirement age, but most of us have no idea how much it actually costs. I discovered a Lincoln Financial Group tool on What Care Costs that shows cost averages based on the state you live in for the three types of long-term care: Home Health Care, Skilled Nursing Homes, and Assisted Living Facilities.

 

The highest costing nursing homes are predominately located on the East Coast of the United States.  New York, Maine, and Connecticut all have daily costs as high as $430. Alaska, however, ranks highest in the nation at $490 per day – nearly double the national average cost. Texas had the second cheapest nursing home costs at only $167 per day, while Oklahoma had the least expensive in the nation at $159 per day.

 

Home healthcare occurs when a licensed healthcare professional comes to your home to assist with your daily needs. Texas ranked the 10th cheapest state for home health care by a licensed nurse at $137 per visit. But the real cost saving is along the East Coast. States such as New York and Connecticut have the lowest cost, ranging from $91 to $119 per visit. The most expensive home health care was in the Northern U.S.; states like Wisconsin, Montana, and Oregon had costs ranging from $162 to $188 per visit.

 

Assisted living facilities in New York, Maine, and Connecticut averaged $5100 to $5800 a month. New Hampshire had the most expensive living facility in the U.S. at $6300 a month – 33% more than the national average cost. Once again, southern states had the cheapest monthly average for assisted living facilities. Oklahoma and Louisiana had the lowest average of $3100-$3200 monthly.

 

Overall, Lincoln Financial Group has provided me with great statistics essential for providing our clients with great information.

 

Recent research shows that the cost of long-term care continues to rise across the United States, making planning even more important for individuals approaching retirement. According to the 2025 Cost of Care Survey from Genworth and CareScout, the national median cost for a semi-private room in a nursing home has climbed to approximately $315 per day, or about $114,975 per year, while a private room averages roughly $355 per day ($129,575 annually). Assisted living communities now average about $6,200 per month, or $74,400 annually, reflecting steady increases driven by inflation, staffing shortages, and higher demand for senior housing.

 

Home-based care, often preferred by older adults who wish to age in place, has also become more expensive. The same survey reports that the national median hourly rate for non-medical in-home caregivers reached $35 per hour in 2025, which translates to about $80,080 per year, assuming roughly 44 hours of care per week. Skilled private-duty nursing services, which involve more advanced clinical care, can average around $160 per visit or about $90 per hour, depending on the level of medical support required. These increases reflect broader wage growth in healthcare and the rising demand for professional caregiving services.

 

Another important factor to consider is how rapidly long-term care expenses have grown compared with general inflation. Data analyzed by UBS using Genworth’s cost-of-care studies found that between 2014 and 2024, long-term care services experienced annual inflation rates ranging from 3.4% for nursing homes to more than 5% for home health aide services, outpacing the overall Consumer Price Index during the same period. This trend suggests that future long-term care costs could increase significantly over time, especially as the aging population grows and demand for care facilities and trained staff rises.

 

Financial planners often highlight that long-term care is not a rare event but a common part of aging. Government estimates indicate that about 70% of Americans turning 65 will require some form of long-term care during their lifetime, yet relatively few households actively plan for these expenses. For this reason, tools like Lincoln Financial Group’s cost-comparison calculator can provide valuable insights for individuals evaluating potential future expenses and considering options such as long-term care insurance, hybrid life-insurance policies, or dedicated savings strategies.

 

Understanding both regional differences and national trends can help retirees and financial professionals make more informed decisions when preparing for the long-term care needs that may arise later in life.