"When asked the likelihood that a 65-year-old will eventually need some type of long-term care, only 23% of U.S. adults answered correctly. The right answer, according to the 2025 P-Fin Index from the TIAA Institute and GFLEC, is about 70%, or 7 in 10. That gap between perception and reality frames the rest of the data, especially when you learn that most Americans are budgeting their retirements around a risk they have badly underestimated."
"Long-term care is the part of aging that Medicare largely does not pay for: help with bathing, dressing, eating, and moving around, whether delivered at home, in assisted living, or in a nursing facility. It is the line item that quietly drains retirement accounts because households assumed it was covered. The P-Fin question is so consequential because the answer determines how much of a nest egg has to be earmarked for care rather than spent on living."
"U.S. personal consumption on healthcare reached $3,741.3 billion in March 2026, up from $3,463.6 billion a year earlier. This $277.7 billion increase outpaced every other major service category, including housing. Healthcare prices rise faster than overall inflation, and the headline Consumer Price Index at 332.4 in April 2026 understates what care-heavy households actually experience. This is especially dangerous, as only 36% of adults correctly understand financial risk."
"The Federal Reserve's preferred gauge tells the same story. Core PCE has climbed from 125.79 in May 2025 to 129.28 in March 2026, a steady grind upward that compounds for anyone planning a 20 or 30-year retirement. Currently, only 23% of Americans correctly understand the likelihood of needing long-term care in older age . A care need that looks affordable on today's price sheet looks very different by the time it actually arrives."
A survey finds that most U.S. adults underestimate the likelihood that a 65-year-old will need long-term care, with only 23% answering correctly when the correct figure is about 70%. Long-term care includes help with daily activities such as bathing, dressing, eating, and moving, whether provided at home, in assisted living, or in a nursing facility. Medicare largely does not pay for this type of care, so households may assume it is covered and fail to earmark enough retirement savings. Healthcare spending is rising quickly, with personal consumption on healthcare increasing year over year. Core PCE also continues to climb, compounding planning errors over long retirements.
Read at 24/7 Wall St.
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