Long-Term Care Planning: The Overlooked Piece of a Woman’s Retirement Plan
When most people hear the phrase long-term care, they immediately think of nursing homes. But long-term care (LTC) actually refers to a wide range of services and support systems you may need if you can no longer perform everyday activities on your own. This could mean help with bathing, dressing, eating, or managing medications. Care can be provided in your own home, an assisted living facility, or a nursing home—and unfortunately, the costs can be significant.
Why LTC Matters for Women
As women, we’re more likely to need long-term care than men. We tend to live longer, are more likely to live alone later in life, and often take on caregiving roles for others—sometimes at the expense of planning for our own care.
That longevity comes with both opportunities and risks. Without a plan for how to cover potential long-term care needs, you may find yourself spending down savings more quickly than intended—or relying on children or loved ones to step in. Neither outcome is ideal when your goal is independence.
The Cost Reality
According to Genworth’s most recent Cost of Care Survey, the median annual cost of a private room in a nursing home is over $100,000—and rising. Home health aides and assisted living facilities aren’t far behind. Multiply that over several years, and the numbers can be staggering.
Without a plan, these expenses often fall on personal savings, family members, or force you into difficult trade-offs that may compromise your independence or lifestyle.
Illustrative Scenarios
To make this more concrete, let’s look at a few illustrative examples of how different women might approach long-term care planning:
Linda, age 72: She never considered LTC insurance and assumed her retirement savings would be enough. After an unexpected fall required two years of in-home care, her nest egg was severely depleted. Her story highlights the risk of not planning ahead.
Carol, age 68: As a widow, she purchased a hybrid life insurance policy with a long-term care rider. Now she has confidence knowing that if she ever needs extended care, her policy will help cover it—and if not, her children will still receive a life insurance benefit.
Susan, age 60: A high-earning professional, she chose to self-fund by earmarking a portion of her portfolio specifically for future care. By labeling those assets in her financial plan, she can protect her lifestyle while reducing the burden on her children.
These scenarios are not about specific clients, but they help illustrate the very real decisions women may face when it comes to planning for care.
Options for Funding Long-Term Care
The good news is that you have choices, and the earlier you plan, the more flexibility you’ll have:
Traditional Long-Term Care Insurance: Pays a daily or monthly amount toward care, though premiums can rise and benefits are “use it or lose it.”
Hybrid Life Insurance with LTC Riders: Combines life insurance with a long-term care benefit. If you never need care, your beneficiaries still receive the death benefit.
Self-Funding: Setting aside a portion of your portfolio specifically earmarked for care, though this requires discipline and significant assets.
Health Savings Accounts (HSAs): If you’re eligible, HSAs allow you to save pre-tax dollars for future healthcare expenses, including some long-term care costs.
Why Planning Early Matters
Waiting until your late 60s or 70s to explore LTC coverage often makes it prohibitively expensive—or worse, unavailable due to health issues. By addressing it earlier, you give yourself the gift of choice, affordability, and peace of mind.
A Women-Centered Perspective
As a CERTIFIED FINANCIAL PLANNER™ professional, I see the ripple effects long-term care can have on a woman’s retirement plan. It’s not just about money—it’s about maintaining dignity, independence, and control over the kind of care you’ll receive.
For many women, the financial burden of care also impacts the legacy they want to leave to children or grandchildren. Proactive planning ensures that your hard-earned savings go where you want them to—not just to cover unexpected care costs.
The Bottom Line: Long-term care planning isn’t an optional add-on to your retirement strategy—it’s an essential piece of the puzzle. For women especially, the earlier you start planning, the more confidence you’ll have in your financial future.
If you want to talk about this further, schedule a complimentary financial consultation with me to talk through your comprehensive financial plan—including strategies for long-term care. https://calendly.com/winstone-wealth-partners/financial-consultation-with-lauren-smith
Please Note: Any opinions are those of [INSERT FA NAME/or DBA] and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete and does not constitute a recommendation. Past performance may not be indicative of future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Please consult with your financial advisor about your individual situation. While we are familiar with the issues presented herein, as Financial Advisors of Raymond James, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
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