As America’s population ages and lives longer, the demand for long-term care rises while the supply of caregivers shrinks. With the oldest baby boomers turning 80 next year and the number of people over 85 expected to triple by 2060, the need for long-term care planning has never been more urgent.
Now is the time to take control of your future. At Timbuktu Capital Management, LLC, we help individuals and families build personalized long-term care strategies that protect their finances and preserve their independence, without any hidden agendas. As a fiduciary, we’re legally bound to act in your best interest and never earn commissions from insurance companies. Whether you're nearing retirement or helping a loved one prepare, early planning can make all the difference.
The Growing Care Gap:
The long-term care industry faces a severe workforce shortage fueled by low wages and reduced immigration. Many care workers earn just over $16 an hour, and immigrants, who make up 28% of this workforce, are becoming hard to recruit due to federal immigration policies. This shortage, coupled with rising demand, is causing the cost of care to soar.
In 2024, prices for services like assisted living and nursing homes rose by 10%, significantly outpacing general inflation. The annual median cost for long-term care in 2024, depending on the type of service, ranged from $26,000 to $127,750. On average, a private nursing home room costs over $10,000 a month, while a semi-private room costs roughly $9,277 a month. Assisted living facilities tend to be more affordable but are still considerably expensive, averaging $70,800 annually, and these costs vary dramatically by location. For those receiving home care services, homemaker services averaged $33/hour, and home health aide services averaged $34/hour in 2024. These services are projected to approach $100/hour by 2060. The overall costs of long-term care services across the spectrum are projected to increase significantly.
Misconceptions About Coverage
- Medicare only pays for short-term care (up to 100 days post-hospitalization)
- Medicaid is the primary payer for long-term care, but it is available only to those with very low income and limited assets.
- Most people must rely on their personal savings, insurance, or family support.
How Likely Are You to Need Long-term Care?
According to Boston College’s Center for Retirement Research
- ONLY 20% of retirees won’t need long-term care at all.
- 20% will have severe needs
- The remaining 60% will have low to moderate needs
But predicting individual outcomes is tough–– and care costs vary based on location, type of care, and duration.
Planning Your Strategy:
- Long-term Care Insurance:
- Traditional policies are expensive and increasingly rare–only about a dozen companies offer them.
- Hybrid policies (combining life and long-term care insurance) are gaining popularity. These allow policyholders to use death benefits for long-term care needs while alive.
- These policies often provide limited coverage and do not adequately cover in-home care or newer care models, leading to gaps in coverage.
- Self-funding
- Affluent individuals may save and pay out of pocket, which requires careful planning.
- Consider whether you want to age at home and who might help make decisions or provide care.
- Financial Planning Tips
- Start planning in your 50s or early 60s
- Consider setting aside 2-5 years’ worth of long-term care costs
- Use tools like Roth conversions, IRAs, and Health Savings Accounts to improve tax efficiency
- Delay Social Security to maximize guaranteed income, which can help offset future care expenses
- Family Caregiving
- Most care is provided informally by family and friends, but this can create financial stress.
- Over half of informal caregivers cut back on spending, and many face long-term financial consequences.
Final Thoughts:
Long-term care isn’t just about medical issues–it’s financial and emotional. Whether you’re approaching retirement or helping a loved one plan, now is the time to have serious conversations and explore your options. Planning today can protect your independence, preserve your assets, and ease the burden on your family tomorrow.
At Timbuktu Capital Management, we believe your retirement should be defined by freedom, dignity, and peace of mind—not financial uncertainty. Let us help you create a long-term care strategy that fits your lifestyle, goals, and legacy.
- Schedule a complimentary consultation with Timbuktu Capital Management: https://www.timbuktucapital.com/contact-us/
- Explore tailored long-term care funding solutions—from insurance to self-funding
- Learn how to optimize your retirement income and protect your loved ones from future burdens.
- Start building a care plan that aligns with your values.
Your future care deserves more than guesswork. Plan confidently—age with dignity. Partner with Timbuktu Capital Management, LLC.
Contact us today to start your personalized care planning journey.
Phone: (857) 419-3809
Email: Marketing@TimbuktuCapital.com
Address: 177 Huntington Ave, 17th floor, Boston, MA, 02115 USA
References and Recommended Articles:
Miller, M. (2025, May 24). Retirees, Get Ready to Need Long-Term Care. Here’s What to Know. The New York Times. https://www.nytimes.com/2025/05/24/business/retirement-long-term-care.html
Yang, J. (2025, April 3). Annual costs of long-term care services in the U.S. in 2024, by type. Statista. https://www.statista.com/statistics/310446/annual-median-rate-of-long-term-care-services-in-the-us/#:~:text=In%202024%2C%20the%20annual%20median,for%20home%20health%20aide%20services.
Published July 28, 2025
Written May 27, 2025
