The cost of long-term care is growing rapidly and is expected to double from the current $2.8 trillion to $5.6 trillion by the year 2047, according to a recent report by PricewaterhouseCoopers.
Part of the reason for the dramatic increase is the overall better health of seniors. As a result, we are living longer. It is anticipated that the number of people 70 and older will double in the next three decades.
Currently, the average lifetime cost of long-term care per person is $172,000. And that only includes paid services. It does not consider informal, family care.
Medicare and Medicaid will also experience financial burdens if these estimates are correct. As the population ages, these two programs will see an increased financial need for their recipients.
One way for families and individuals to offset some of the impact of this growing problem is to consider long-term care financing, either through savings, if that is possible, or long-term care insurance. If you are considering insurance, you need to do it when you are younger and healthy. As you age and see increased medical issues, it often becomes too costly or impossible to obtain.