A 2022 study from the U.S. Department of Health and Human Services estimated that 56% of people turning 65 between 2021 and 2025 would need long-term services and support at some point in their lives. Long-term services and support means needing help with daily activities due to physical, cognitive or chronic health conditions.

Just over a third of all people will need services for up to three years, according to the study, and 22% of adults will need services for more than five years. According to AARP, many people need long-term services and support before they are 65 years old. In 2022, half of the 8 million Americans needing services were younger than 65, according to the organization.

The study stated the average American turning 65 between 2021 and 2025 would incur around $121,000 in future long-term services and support costs. Families would pay for more than one-third of those costs out of pocket, according to the study, while the rest would be covered by public programs and private insurance. Most people would pay “relatively little” for their care, with 65% of people paying nothing out-of-pocket, but 14% would pay $100,000 or more out of pocket.

Long-term services and support provided by family members for free is “substantial,” according to the report. If the unpaid work was valued at the pay rates of paid work, it would be worth $204,000 on average per person receiving the care. Adults who do not have family to provide unpaid care spend “much more” on care than those who do.

When planning for health care beyond retirement, it’s important to note that Medicare does not cover long-term care, according to Medicare.gov. Long-term care not covered by Medicare includes medical and nonmedical care, like assistance with everyday tasks. Examples include assistance with things like dressing, bathing and using the bathroom, home-delivered meal services and transportation. 

Long-term care not covered by Medicare also includes nursing home stays. However, some nursing homes accept Medicaid, which is a program that helps pay health care costs for those with limited income. Medicaid can also cover some long-term care. Another option for long-term care coverage is long-term care insurance, which is a policy specifically intended for that type of care.

Medicare does cover hospice care, as well as many other services. To see a full list of what Medicare does and does not cover, visit Medicare.gov/coverage.