Americans' Expectation for Long-Term Care: Insights from the Latest Study

As life expectancy continues to rise, so does the anticipation of needing long-term care among Americans. The recent 2025 Planning Progress Study by Northwestern Mutual reveals that approximately 61% of U.S. adults believe they will need long-term care at some point in their lives. Notably, 74% of citizens expressed a preference for receiving this care in their own homes rather than in skilled nursing facilities.

However, despite these preferences, a worrying trend emerges: only 42% of Baby Boomers and 35% of Generation X have taken steps to financially prepare for this inevitable need. This gap in readiness brings to light the importance of proactive financial planning in ensuring a secure and comfortable aging process.

The Preference for In-Home Care

The preference for in-home care is consistent across various demographics. In all age groups and genders surveyed, 74% indicated that they would prefer to remain in their homes if they require assistance due to long-term health issues. Only 11% favored a nursing facility, showcasing a clear desire to maintain independence and comfort within familiar environments.

The study defined long-term care as aid for individuals with chronic conditions that gradually worsen over time, affecting their ability to perform daily activities such as bathing, eating, and dressing. As the population ages, these needs will become increasingly common, making understanding and planning for long-term care essential.

Projections and Financial Preparations

Looking toward the future, the cost of long-term care is a pressing concern. The Illumifin Cost of Care Study projected that the annual costs for home health aide services will reach $96,360 if care is provided for just eight hours a day. If expenses increase by an estimated 5% annually, families may face costs exceeding $500,000 by 2058. These potential out-of-pocket expenses stand as a significant barrier to achieving the preferred in-home care for most Americans.

Despite these alarming projections, only a small fraction of Boomers and Gen X'ers are taking initiative in their financial planning, with less than one-third formulating strategies for potential caregiving needs for themselves or their family members. Kamilah Williams-Kemp, Northwestern Mutual's Chief Product Officer, emphasized this financial unpreparedness as a crucial oversight that could hinder individuals' ability to receive care aligned with their wishes in their later years.

The Caregiver Burden

Adding to the seriousness of the situation is the growing number of Americans stepping into caregiver roles. At present, 20% of adults are providing care to loved ones, which often requires them to sacrifice personal resources, such as income and savings. Furthermore, about 28% of respondents said they have previously acted as caregivers for someone, demonstrating the prevalent nature of this responsibility.

The emotional and financial toll on caregivers is intense. Many report reducing their personal expenses, taking on additional work, accumulating debt, or pulling funds from their retirement savings to manage the caregiving responsibilities. The stress of these burdens sheds light on the need for clearer financial structuring and support systems in caregiving situations.

Williams-Kemp noted that planning ahead not only allows individuals to age gracefully but also aids in protecting their loved ones from the financial strain resulting from caregiving duties. Through a comprehensive financial plan that combines risk management and investments, individuals can alleviate future worries associated with long-term care.

Conclusion: Bridging the Gap

As the results from the 2025 Planning Progress Study reveal, the expectations for needing long-term care are widely held, yet the financial planning necessary to support such needs is in stark contrast. Addressing this disconnect between anticipated needs and financial preparedness is critical. By equipping individuals with the knowledge and tools to plan effectively, we can foster both peace of mind and a greater quality of life for those in their golden years and their caregivers.

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