Retirement is about having the income to enjoy the lifestyle you've worked hard to achieve. But what happens when future long-term care costs start eating away at that income—potentially draining your retirement accounts altogether?
Matt McCann, CLTC, a leading expert on long-term care planning, says you are working hard to build a retirement plan based on income—Social Security, pensions, 401(k)s, IRAs. However, too many people ignore the consequences of aging and future long-term care costs.
"What if the biggest threat to that income isn't market volatility or inflation, but a long-term health crisis?"
McCann says this risk is not hypothetical. What starts as a few hours of help a week can quickly become a full-time need—and a full-time burden on your income, savings, and family.
That's why real retirement readiness means more than having enough in your 401(k). It means having a plan in place for long-term care—before the need arises.
"It's a reality for millions of older Americans. According to the U.S. Department of Health and Human Services, 56% of people age 65 and older will need long-term care. But families don't focus on percentages—they care about how long-term care costs will impact their loved ones and their finances."
The problem is that long-term care isn't covered by Medicare or health insurance if it's custodial—meaning help with daily activities like dressing, bathing, toileting, personal hygiene, eating, and other tasks we take for granted today, or even supervision due to dementia.
So McCann asks: How will you pay for it? And how can you protect your spouse and adult children from the physical, emotional, and financial burdens that come with aging and long-term care?
The Real Cost of Care—and Why It's Rising Fast
Let's talk dollars and sense. Long-term care is expensive, and it's only getting more so. According to the LTC News survey for long-term care costs nationwide:
- A home health aide costs more than $5,500 per month on average.
- Assisted living costs over $4,900 per month plus surcharges and adds up to $2000 or more monthly.
- A private room in a nursing home? Over $10,500 a month based on the national average.
"In high-cost states like New York or California, those numbers can double. Even in lower-cost states, long-term care can burn through your income fast—unless you have a plan."
If your monthly retirement income is $4,000 or $5,000, it won't be enough to cover care costs. That's when people start dipping into savings, cashing out IRAs, or even selling homes to create liquidity.
"People often don't realize until it's too late—Medicare doesn't cover this kind of care. That burden falls on your income and assets, unless you've protected yourself. The most affordable way to do that is with Long-Term Care Insurance."
Why Family Caregiving Isn't the Answer
It's easy to think your spouse or adult children will step in if you ever need help. But that's not a plan—it's a burden.
Caring for a loved one with chronic health or memory issues is emotionally and physically exhausting. It can also derail your children's careers, finances, and mental health.
McCann said one of his recent clients shared with him the experience they had with her mother.
"I tried to take care of Mom after her stroke," she explained.
"But between working full-time, raising my kids, and her needs, I burned out. We eventually had to bring in outside help, but it drained her savings fast."
Professional caregivers offer trained support, but they come at a steep cost. And without an LTC Insurance policy, McCann says, you're paying out-of-pocket.
A Simple Truth: You Pay for Long-Term Care From Income
Here's what too many people overlook: you pay for long-term care with your income.
Unless you have Long-Term Care Insurance, you're diverting money that was supposed to fund your lifestyle—travel, hobbies, enjoying your grandkids—into paying for care expenses. And if your income isn't enough, you start liquidating your retirement accounts.
That triggers:
- Taxes on withdrawals
- Early depletion of assets
- Stress on your surviving spouse
Eventually, McCann notes that you may even face Medicaid spend-down rules if your assets run out, dramatically limiting your care choices.
What's the Solution? A Long-Term Care Insurance Plan
You don't need a massive policy. Even a modest LTC Insurance plan can create guaranteed, tax-free funds that pay for care in any setting—including your home.
Partnership LTC policies, available in most states, offer additional asset protection.
The benefits?
- Protect your retirement income.
- Preserve your 401(k), IRA, and other savings.
- Keep your spouse financially secure.
- Allow your children to be your family, not your caregivers.
- Maintain control and choice over where and how you receive care.
"We decided to get a small policy in our early 50s," says one of McCann's clients from Arizona.
"It gives us peace of mind knowing we have support when one of us needs care down the road. My kids don't have to worry, we don't have to worry. We can live our lives."
Modern LTC policies are flexible and more affordable than many expect. You can even combine life insurance with long-term care benefits, making the money work in multiple ways.
Timing Matters: Planning Early Pays Off
The best time to get coverage is when you're younger and healthier. Premiums are based on age and health when you acquire coverage. If you wait until your 70s or after a health diagnosis, you may be uninsurable or face higher premiums.
How Much Does Long-Term Care Insurance Cost at My Age?
Here's what to keep in mind:
Use tools like the LTC News Cost of Care Calculator to understand what care costs will look like where you live and when you're likely to need it.
The Emotional Benefit: Giving Your Family the Gift of Time
Planning isn't just financial. McCann says it's an emotional gift to your loved ones.
"Planning for long-term care isn't just about protecting your finances—it's one of the greatest emotional gifts you can give your loved ones. It spares them from the stress of crisis decisions and lets them focus on being family, not caregivers."
When you've set up an LTC policy to pay for future extended care, your spouse and children don't have to scramble during a crisis. They won't be forced to quit jobs, rearrange their lives to be caregivers, or drain your savings to manage your care.
McCann says when you have LTC Insurance you remain in control.
"When you need extended care, your loved ones will be able to hire amazing caregivers. They can just be a daughter or son, not a nurse, not a caregiver. When I speak with family members when processing an LTC policy claim, they say it means everything to have time to be family."
McCann says that Long-Term Care Insurance turns a crisis into a managed situation. It gives you and your family breathing room, dignity, and options.
Key Takeaways for Retirement Readiness
Here's what you can do now to protect your retirement from long-term care risk:
- Acknowledge the risk: More than half of Americans over 65 will need care.
- Understand what health insurance and Medicare don't cover: These insurance programs pay for only skilled care, not custodial care.
- Know your local costs: Use LTC News' Cost Calculator to plan accurately.
- Talk with an LTC Insurance specialist: Policy premiums vary dramatically between insurance companies. An LTC Insurance specialist will provide accurate quotes from all the top-rated insurance companies that offer long-term care solutions.
- Think beyond yourself: It is about your spouse, children, and legacy.
- Act early: Coverage is easier and more affordable to get when you're younger and healthy. Most people acquire an LTC policy between the ages of 47 to 67.
Ask Yourself: Are You Really Ready for Retirement?
You've saved, invested, and planned for a retirement filled with freedom and peace of mind. But have you prepared for the most predictable, expensive, and emotionally charged event that could derail all of it?
"Planning for long-term care isn't about fear—it's about freedom. Freedom for your income to keep supporting your lifestyle. Freedom for your loved ones to stay family, not become caregivers. And freedom to age with dignity, wherever you choose."
Get Professional Planning Help Now
Matt McCann, CLTC is licensed in all 50 states and the District of Columbia, representing top-rated insurance companies that provide long-term care solutions.
His innovative approach allows clients to consult with him over the phone while viewing his computer screen, ensuring a convenient and transparent process for learning about, exploring, and selecting the best options.
You can get free and accurate quotes from all the top companies, along with professional recommendations - Free and Accurate LTC Insurance Quotes.
Media Availability
McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care.
Contact McCann through his website for information.