Retirement expense to plan for is long-term care.

Medicare generally does not cover custodial long-term care, and CareScout and Genworth report average annual costs ranging from about $70,800 for assisted living to $127,750 for a private nursing home.

Many people budget for housing, food, and medical care in retirement but often overlook long-term care. Medicare typically covers only medical services and does not pay for most custodial long-term care such as home health aides, assisted living, or many nursing home services. Recent data from CareScout and Genworth show substantial average annual costs across care settings. The article highlights long-term care insurance and family support as commonly discussed ways to address those expenses. Key facts: - Medicare generally pays for medical care only and does not cover most custodial long-term care such as home health aides, assisted living, or nursing home custodial services. - Average annual costs reported by CareScout and Genworth include: home health aide $77,792; assisted living $70,800; shared nursing home $111,325; private nursing home $127,750. - Extended long-term care needs could deplete retirement savings and still leave insufficient funds for necessary care. - Many financial experts say the optimal time to shop for long-term care insurance is during one's 50s, though people in their 60s may still find policies depending on health. - Funds in eligible health savings accounts can be used to pay long-term care insurance premiums. Summary: Long-term care costs reported by CareScout and Genworth are substantial and may have a major effect on retirement finances. Options discussed in the reporting include family-provided care and long-term care insurance, with timing and health affecting insurance availability and premiums. Undetermined at this time.