Milliman finds 65-year-olds need $135K for long-term care

"About one-quarter of men will receive less than a year of paid care, leaving only 29% with care needs lasting more than a year. The report was the subject of a brief published this week by the Center for Retirement Research at Boston College. Milliman's data shows that women are more likely to need long-term care, with 41% requiring more than a year and 14% needing five years or more, which can cost an average of $665,000."

"The most expensive states are clustered along the West Coast and Northeast with average costs about twice the national average while the least expensive are in the South Central region. Milliman highlighted the need for a national long-term care insurance program. Most seniors cannot afford future care costs with the Federal Reserve reporting median retirement savings of $200,000 for the 65-to-74 age bracket and $130,000 for those 75 and older."

"Residents of Hawaii, California, Washington, Florida and New Hampshire tend to live longer and may need care for extended periods. Conversely, those in Mississippi, Alabama, West Virginia, Louisiana and Kentucky generally have shorter life spans and lesser care needs, according to the study. Healthier residents also tend to need care for shorter durations."

Milliman's analysis reveals substantial variation in long-term care needs and costs across demographics and geography. Approximately 50% of men and 40% of women require no paid care, while 29% of men and 41% of women need care exceeding one year. Women face higher long-term care burdens, with 14% requiring five or more years at average costs of $665,000. Geographic location significantly impacts care needs and expenses, with West Coast and Northeast states averaging twice the national cost, while South Central states remain least expensive. State rankings reflect combined factors including service costs, care likelihood, and duration. Colorado, Montana, and Hawaii show lowest care needs, whereas Hawaii, Connecticut, and New York residents require longest care periods. Most seniors lack adequate retirement savings to cover future care costs, necessitating earlier contribution planning.

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