Introduction: The Reality of Long-Term Care Costs

One of the biggest financial risks facing retirees today isn’t the stock market—it’s the cost of long-term care.

Many people assume Medicare will cover extended care needs, but the reality is very different. You will need to protect yourself from these explosive costs. You will be liable to pay personally not Medicare.

Understanding the true cost of long-term care is critical if you want to protect your retirement savings and avoid placing a burden on your family.

Average Cost of Long-Term Care in 2025

1. In-Home Care

 

  • New Jersey Average: $32–$38 per hour

  • Annual Cost: $65,000–$80,000+

2. Assisted Living Facilities

  • New Jersey Average: $6,500–$9,000 per month

  • Annual Cost: $78,000–$108,000+

Choosing between assisted living and other options? You may also want to read Why People Are Leaving Medicare Advantage Plans—network limitations can impact care decisions

3. Nursing Homes (Skilled Nursing Care)

  • New Jersey Average: $11,000–$14,500 per month

  • Annual Cost: $130,000–$175,000+

What Factors Impact Long-Term Care Costs?

  • Location (New Jersey is among the highest)

  • Level of care needed

  • Duration of care

  • Inflation

Does Medicare Cover Long-Term Care?

Medicare does NOT cover most long-term care.

It only covers:

  • Short-term skilled nursing care

  • Rehabilitation after hospitalization

For a deeper dive, visit our post on 6 Things Medicare Doesn’t Cover.

How Do People Pay for Long-Term Care?

1. Out-of-Pocket

Many retirees rely on savings. But without a plan, this can drain assets quickly.

2. Medicaid

Strict eligibility rules apply.

3. Long-Term Care Insurance

Traditional policies can help—but premiums have increased.

4. Hybrid Long-Term Care Policies

A growing solution that combines life insurance with LTC benefits.

Why Planning Early Matters

The earlier you plan, the more options you have.

If you’re approaching Medicare age, it’s time to put your strategy together.

Final Thoughts

In New Jersey, long-term care can exceed $100,000 per year.

Without a plan, that can significantly impact your retirement.

With the right strategy, you can:

  • Protect your savings

  • Maintain independence

  • Reduce stress on your family

Need Help Building a Long-Term Care Plan?

At Stark Associates Insurance Agency, we specialize in helping clients prepare for healthcare costs in retirement.

📞 (732) 747-0411
🌐 www.stark-associates.com