Long-Term Care Savings Gap Estimator (2025)
Estimate how much your current savings and insurance coverage will cover, and how much more you'll need for long-term care expenses.
What This Calculator Does
This tool estimates whether your current savings and long-term care insurance will be enough to cover potential future care expenses, and how much additional funding you'll need.
It's especially useful for retirees, caregivers, and financial planners preparing for assisted living or in-home support costs.
Why the "Savings Gap" Matters
High Costs
The average U.S. cost of long-term care exceeds $100,000/year for nursing homes and $70,000/year for assisted living.
Low Coverage
Fewer than 10% of Americans have dedicated long-term care insurance.
Inflation Impact
Inflation and increasing life expectancy expand the gap annually.
Growing Need
More people require long-term care as the population ages.
Average Long-Term Care Costs by Type (2025)
| Care Type | Monthly Avg. | 5-Year Total | 10-Year Total |
|---|---|---|---|
| In-Home Care (8 h/day) | $5,200 | $312,000 | $648,000 |
| Assisted Living | $6,500 | $390,000 | $810,000 |
| Nursing Home (Private Room) | $9,500 | $570,000 | $1.2M |
Source: Genworth Cost of Care Survey, 2025
Key Inputs That Affect Your Gap
Inflation Rate
Costs rise 3–5% per year on average.
Investment Growth
Reduces future shortfall if balanced correctly.
Insurance Coverage
Can offset 20–40% of projected costs.
Duration of Care
Each additional year adds significant expense.
Example Scenarios
- • In-home care 8 yrs, $5,000/mo
- • LTC insurance: $100k
- • Savings: $300k
- → Projected gap: $160k
- • Nursing home 5 yrs, $9,800/mo
- • LTC insurance: $200k
- • Savings: $400k
- → Projected gap: $90k
Tips to Reduce the Gap
Frequently Asked Questions
Q1: What's the "average savings gap" in the U.S.?
A: Around $180,000 for people age 60–70 planning 5 years of care.
Q2: Does Medicare cover long-term care?
A: No, it only covers medical, not custodial, care.
Q3: Should I rely on my retirement savings?
A: It's risky, long-term care can drain 25–40% of retirement funds.
Q4: How often should I update this calculation?
A: Every 1–2 years, or when your savings or insurance coverage changes.