Picture the ocean on a calm day — steady waves, a breeze in the air, everything in balance. Then imagine, far on the horizon, a massive swell forming. At first, it looks small, almost harmless. But as it rolls closer, it grows into a wall of water, and before you know it — boom — it crashes onto shore.

That’s what long-term care costs look like for retirees. You may not see them coming in your 60s, but by the time you reach your 70s, 80s or 90s, the wave is towering. If you’re not prepared, it can wipe out years of savings, throw your retirement plan off course and leave your loved ones scrambling to pick up the pieces.

The rising tide of care needs

Let’s start with the reality: Nearly 70% of Americans turning 65 today will need some form of long-term care during their lifetime, according to the U.S. Department of Health and Human Services. That means for every couple, it’s highly likely that at least one spouse will require extended care.

Now here’s where it gets serious: the cost of that care. According to Genworth’s 2023 Cost of Care Survey, the average price of a semiprivate nursing home room is over $8,600 per month. A private room? North of $9,800 per month. Even home health aides — often considered the “less expensive” route — average more than $5,100 a month.

And those numbers? They’re rising faster than inflation. Long-term care expenses have grown about 3%-5% annually for the past two decades. Project that forward another 15-20 years, and the tsunami swells even higher.

Why Medicare and health insurance won’t save you

Here’s a hard truth many retirees don’t realize until it’s too late: Medicare does not cover long-term custodial care. It may cover up to 100 days of skilled nursing care after a hospital stay, but it won’t pay for help with daily activities like bathing, dressing or memory care for dementia.

Traditional health insurance? Same story. Designed for acute medical care — not years of ongoing assistance. Medicaid does cover long-term care — but only once you’ve spent down nearly all your assets to qualify. In other words, not much of a retirement plan.

This is why the “long-term care gap” is one of the biggest unspoken risks to retirement security. Many families only learn this when a loved one has a fall, a diagnosis or a sudden decline — and by then, the financial hit feels like a tidal wave.

The human side of the storm

The costs are staggering, yes. But numbers alone don’t capture the emotional impact. Imagine watching your spouse’s retirement dream — travel, golf, spoiling the grandkids — get derailed because all the money is going toward round-the-clock care. Or picture adult children struggling to balance their own careers and families while trying to care for Mom or Dad.

Without a plan, families often shoulder the caregiving burden themselves. That stress shows up in strained marriages, lost income and even declining health for caregivers. The tsunami doesn’t just hit the retiree — it drenches everyone around them.

Building your lifeboat

So how do you protect yourself from being swept away? It starts with awareness. Pretending the wave doesn’t exist won’t make it disappear. The key is building a financial lifeboat strong enough to stay afloat.

Some options include:

• Traditional long-term care insurance: Policies specifically designed to cover extended care. Premiums can be high, and if you never use it, the money is gone — but for some, it provides peace of mind.
• Hybrid life insurance with LTC riders: These combine life insurance with long-term care benefits. If you don’t need care, your heirs receive a death benefit. If you do, the policy helps cover expenses.
• Fixed index annuities with LTC benefits: Certain annuities now include riders that allow you to use part of your income stream for care needs — often doubling or tripling payouts if you meet health criteria.
• Self-funding: Some retirees set aside a specific bucket of assets to cover potential costs. The danger here is underestimating how much you’ll need — or depleting funds too quickly.

The best solution depends on your age, health, assets and goals. What matters most is that you explore your options before you need them.

Timing is everything

Here’s the paradox: The younger and healthier you are, the less you think about long-term care. Yet that’s precisely the best time to plan. Insurance options become more expensive — or unavailable — the older you get. Waiting until your 70s can mean sky-high premiums or disqualification altogether.

Think of it like boarding a lifeboat when the sea is calm. You don’t wait until the wave is crashing over the bow to start paddling.

Turning the tide

Long-term care is often called the “silent threat” to retirement. But it doesn’t have to be. By acknowledging the risk and preparing a plan, you can turn a potential disaster into something manageable.

The question is simple: When that wave comes — and it will — will you be standing on the shore, bracing for impact, or will you already be in your lifeboat, rowing toward safety?

Your retirement dreams — your trips, your hobbies, your legacy — are worth protecting. Don’t let the long-term care tsunami sweep them away.

Lyle Boss, The REAL BOSS Financial, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West States. Boss Financial, 955 Chambers St. Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.