The Cost of Senior Care is on the Rise
- Fiffik Law Group, PC
- 19 hours ago
- 3 min read
Recent studies and surveys show the costs of long-term care for seniors have been rising rapidly, with projections indicating that the trend will continue into 2026 and beyond. Increased demand, inflation, staffing shortages, and operational costs are key factors driving up expenses, making long-term care a mounting financial challenge for many families.
As most of us go through our daily routines, it is difficult to imagine needing help with daily tasks. However, research has consistently shown that most Americans over age 65 will need daily help in the form of long-term care at some point. Our kids don’t live near us as often as they did in the past so you can’t necessarily count on a family member for that help. Many will need to pay for the services needed. Â
What is Long-Term Care?
Long-term care encompasses a range of services designed to meet the medical and personal needs of individuals who are unable to perform essential activities independently. These services include assistance with daily activities such as bathing, dressing, and eating, as well as medical care for chronic conditions. Long-term care can be provided in various settings, including nursing homes, assisted living facilities, and in one’s home.
Key Study Findings on Rising Costs
The annual cost for assisted living jumped 10% from $64,200 in 2023 to $70,800 in 2024.
The annual cost for a private room in a nursing home rose from about $116,800 to $127,750 in the same period.
In-home care with a home health aide increased from $75,504 in 2023 to $77,792 in 2024.
For 2025, senior care costs are projected to rise by 20-30%, driven by inflationary pressures, growing demand, and advancements in medical technology.
The average annual expense for senior care now often exceeds $50,000, and can surpass $100,000 depending on the intensity and duration of care needed.
Main Drivers of Cost Increases
Labor shortages have resulted in higher wages and payroll expenses for qualified caregivers, with the national average pay for in-home care climbing to $33-$34 per hour in 2024.
Inflation affects all aspects of the senior care industry, including utilities, food, and insurance premiums.
Operational and capital costs have risen due to more frequent investments in facility maintenance, infrastructure, and technology.
Research on Impact and Affordability
Studies warn that most seniors and their families lack sufficient savings and underestimate potential long-term care costs, with one report noting only 7% of seniors fully understand their insurance coverage for long-term care.
Demand for senior care is increasing as the population ages and life expectancy rises, but funding for care programs and insurance benefits may become strained.
There is growing recognition that improved integration of health, social services, and community supports is needed to help seniors age in place affordably.
Cost Comparisons (2023–2024)
Type of Care | 2024Annual Cost | 2023Annual Cost | % Increase |
|---|---|---|---|
Homemaker Services (hourly) | $75,504 | $57,600 | +31% |
Home Health Aide (hourly) | $77,792 | $63,360 | +23% |
Assisted Living (monthly) | $70,800 | $64,200 | +10% |
Nursing Home Semi-Private (monthly) | $111,325 | $104,028 | +7% |
Nursing Home Private (monthly) | $127,750 | $116,796 | +9% |
The data underscores the steep and continuing rise in senior long-term care costs, with specific studies citing double-digit percentage increases, especially for assisted living and nursing home services.
Planning for Long-Term Care
Planning for long-term care and figuring out how to pay for it can seem daunting. However, investing in long-term care insurance or qualifying for Medicaid may be some of the options available to you to lessen the burden of these ever-rising costs if you are unable to afford private pay for long-term care services. Keep in mind that you and your family members should do whatever you can to be proactive in planning for these possibilities.
One of our experienced elder law attorneys can help you plan ahead, protect your hard-earned savings from the high costs of senior care, find the best way to pay for your long-term care needs, and determine whether you meet the eligibility requirements for any public assistance programs.