Longer life means more care: leaving room in the plan
Suppose a couple has planned their money to age 95. Both reach 85. One of them needs help every day. The plan did not count what that costs.
How large might that cost be? We took the 2025 CareScout survey prices and asked how much to set aside at 65 to pay for care that starts at 85.
We used three lengths of care. The first is 2.2 years, which one industry summary gives as the average for a man. The second is 3.7 years, the average for a woman. The third is 5 years, because the same summary says about one in five people over 65 need care for more than five.
The amounts in the table are in today's dollars. The last column is the money needed at 65. It assumes the money earns a real yield of 3.2% a year in US inflation-linked bonds until it is spent.
Cost of care, in today's dollars, and the money to set aside at 65 for care that starts at 85
| Type of care | Per year | Years of care | Total cost | Set aside at 65 |
|---|---|---|---|---|
| Assisted living, United States | $74,400 | 2.2 | $163,700 | $85,500 |
| Assisted living, United States | $74,400 | 3.7 | $275,300 | $140,500 |
| Assisted living, United States | $74,400 | 5 | $372,000 | $186,200 |
| Nursing home, semi-private | $114,975 | 3.7 | $425,400 | $217,100 |
| Nursing home, private room | $129,575 | 2.2 | $285,100 | $148,800 |
| Nursing home, private room | $129,575 | 3.7 | $479,400 | $244,600 |
| Nursing home, private room | $129,575 | 5 | $647,900 | $324,300 |
Prices are US national medians for 2025. The right-hand column is our calculation.
Care that starts at 85 needs less set aside at 65 than its price. The set-aside is about half the total, because it earns interest for 20 years.
Compare it with the plan. A 30-year plan at $96,000 a year needs about $1,925,000. Setting aside $244,600 for 3.7 years in a private nursing home room adds 13% to that.
The comparison is rougher than it looks. Assisted living and nursing homes bundle housing and meals into one price. A person who gives up a home may stop paying some of the $96,000 a year. So the net extra could be smaller than the table shows.
Prices may also rise faster than the general price level. The 2024 survey reported assisted living up 10% and private nursing home rooms up 9%. In 2025 the increases were 5% and 1%.
Where care is given changes the figure. Relocation guides report assisted living in Mexico at $1,000 to $2,450 a month and in Costa Rica from $2,000 to $2,500 a month.
The same set-aside at lower reported prices (assisted living, set aside at 65 for care from 85)
| Place and monthly price | Years of care | Total cost | Set aside at 65 |
|---|---|---|---|
| Mexico, $2,000 a month | 2.2 | $52,800 | $27,600 |
| Mexico, $2,000 a month | 3.7 | $88,800 | $45,300 |
| Mexico, $2,000 a month | 5 | $120,000 | $60,100 |
| Costa Rica, $2,500 a month | 3.7 | $111,000 | $56,600 |
| Costa Rica, $2,500 a month | 5 | $150,000 | $75,100 |
Prices come from relocation guides and are indicative. They do not measure quality.
Medicare does not pay for custodial care, and one reference notes that most US long-term care policies cover care only in the continental United States. A policy's own wording would say what applies.
None of these figures include who gives the care. A family member, a paid caregiver at home, or a facility each changes the number. The figures describe averages and do not predict any one person.
Back to the couple at 85. At US prices, a set-aside of a few hundred thousand dollars at 65 may cover five years of care. At the prices reported for Mexico or Costa Rica, it may be under $100,000.
Who would you want to give the care, and where? Tell us in the comments. Someone may be planning the same conversation.
Sources we read
CareScout, 2025 Cost of Care Survey, national medians. https://www.carescout.com/cost-of-care
CareScout press release, March 2, 2026. https://d1io3yog0oux5.cloudfront.net/_cd110019bec0d6e9c39ee43fb17e67b0/genworth/news/2026-03-02_CareScout_Releases_2025_Cost_of_Care_Survey_1054.pdf
Senior Housing News, Assisted living resident fees up 10% (2024 survey). https://seniorhousingnews.com/2025/03/04/assisted-living-resident-fees-up-10-as-inflation-keeps-costs-high/
JRC Insurance Group, Long-term care statistics 2026 (years of care by sex; share needing more than five years). https://www.jrcinsurancegroup.com/long-term-care-statistics/
Caresifter, Senior care costs 2026 (what assisted living bundles). https://caresifter.com/what-senior-care-costs
Medicare Interactive, Medicare and long-term care basics. https://www.medicareinteractive.org/understanding-medicare/medicare-covered-services/limited-medicare-coverage-long-term-care-services/medicare-and-long-term-care-basics
Wikipedia, Long-term care insurance (coverage inside the continental United States). https://en.wikipedia.org/wiki/Long-term_care_insurance
Mexico Relocation Guide, Assisted living facilities in Mexico. https://mexicorelocationguide.com/assisted-living-facilities-in-mexico/
Casa Mar Senior Living, Memory care cost in Mexico compared to the United States. https://casamarseniorliving.com/cost-of-memory-care-in-mexico/
Expat Focus, Costa Rica elderly care. https://www.expatfocus.com/costa-rica/guide/costa-rica-elderly-care
Our money calculator on this site (30-year plan example). https://claude.ai/artifact/Hkp7mcbVE8k1ooB41X8tX6
Tell us in the comments