The cost of care

The cost of long-term care can be expensive depending on:

• the type of care you need
• how long you need it
• where care is received

The national average costs listed below are only for one year of care. A study by the Center for Retirement Research found that in most cases, care is needed for three years⁵ — while some individuals need care for a considerably longer period. When planning ahead, you’ll also want to take into account the rising cost of care, which on average has risen approximately 3.3%⁶ per year over the past six years.

In 2008, the national average cost of long-term care for one year in various settings:

In 30 years, long-term care is projected to cost over $250,000 per year. That’s $750,000 to $1,250,000 for a three-to five-year care event.⁷

Click here to find the average cost of care in your area.

5. Center for Retirement Research at Boston College, "How Can We Improve Long-Term Care Financing," June 2008.
6. John Hancock 2008 Cost of Care Survey, conducted by CareScout.
7. Based on the average annual rate of inflation over the past 30 years ending December 31, 2008 of 4.1%, using the Consumer Price Index for All Urban Consumers, Bureau of Labor Statistics, www.bls.gov.