AARP report: Long-term care costs surge nearly 50 percent since 2019

Home care and assisted living costs have surged nearly 50 percent since 2019, wiping out a decade of progress in long-term care affordability for middle-income older adults, AARP’s new report finds.

Additionally, findings show that affordability varies dramatically across states. Older adults in states with the least affordable long-term care can pay for about half the amount of care that older adults in states with the most affordable. As costs rise faster than older adults’ household incomes, many families must deplete savings, rely on unpaid family caregivers, or go without needed care.

“Home care and other long-term care services have quickly become increasingly unaffordable in recent years,” said Alan Weil, Senior Vice President for Public Policy at AARP. “The result is a widening gap between what care costs and what older adults and their families can afford -- and we've got to fix this, because the consequences can be life-threatening.”

 Additional key findings from the report include:

• In recent years, long-term care costs grew faster than incomes. From 2019 to 2024, the annual median cost of home care services increased by close to 50 percent, while over the same period the median household income for someone age 65 or older grew by less than half that amount, making long-term care further unaffordable.
• Typical incomes are not enough to pay for long-term care. In 2024, the median household income for someone age 65 or older was about $60,000, while the annual median cost of home care services exceeded $50,000.
• Savings are often insufficient to cover long-term care needs. The median household age 75 and older has about $50,000 in financial assets, enough to cover roughly one year of home care or only a few months of nursing home care.