Additional Coverage:
- The Most Expensive States for Long-Term Care – And What It Would Actually Cost You to Age There (financebuzz.com)
Long-term care expenses are becoming an increasingly significant financial challenge for retirees across the United States. According to CareScout’s 2025 Cost of Care Survey, the median national cost for a private nursing home room is approximately $129,000 per year, while assisted living averages over $74,000 annually. However, these averages mask substantial variation among states, with some regions facing far higher costs that can quickly erode retirement savings.
Location is a critical factor in retirement planning. What might initially seem like an affordable choice for relocation could end up imposing six-figure long-term care bills, especially for those requiring extended assistance. Being aware of states with the steepest care costs can help retirees make informed decisions and avoid financial pitfalls.
States with the Highest Long-Term Care Costs
- Maine: Private nursing home rooms cost about $178,850 annually, with assisted living at $98,460. The state’s rapidly aging population may keep demand-and prices-high.
- Delaware: Private nursing rooms average $181,588 per year, with assisted living around $91,200.
While not commonly associated with high retirement costs, Delaware’s care expenses are notably steep, urging retirees to weigh healthcare alongside tax considerations.
- Vermont: With private nursing care at $186,332 and assisted living at $103,167 annually, Vermont’s smaller, rural healthcare infrastructure and staffing shortages contribute to elevated costs that could surprise retirees.
- Massachusetts: One of the priciest states for elder care, Massachusetts reports private nursing home costs near $189,800 and assisted living at $115,200, making healthcare one of the largest retirement expenses in the Northeast.
- Washington: Care costs continue to climb in Washington, with private nursing homes averaging $191,625 and assisted living $91,200 annually, mirroring rising healthcare and housing costs in the Pacific Northwest.
- Hawaii: Offering scenic retirement appeal, Hawaii comes with the highest assisted living costs nationally at approximately $145,155, and nursing home care close behind at $196,735. Elevated living expenses compound financial strain for retirees relying heavily on savings.
- Connecticut: The state leads with private nursing care at $200,750 yearly, alongside assisted living costs of $109,410.
Fixed-income retirees may find these figures particularly challenging if long-term care extends over several years.
- New York: Long-term care expenses in New York are among the nation’s highest, with private nursing rooms costing $200,750 and semi-private rooms over $186,000 annually. Dense metropolitan areas and high labor costs drive these figures.
- Oregon: Oregon tops the list for private nursing room costs nationally, with a median of $221,372 per year.
Semi-private care also exceeds $200,000, reflecting the broader Pacific Northwest trend of rising care expenses.
- Alaska: Notably, Alaska exhibits some of the highest long-term care costs overall, with semi-private nursing home rooms nearing $334,000 annually. Geographic isolation and operational costs significantly impact these expenses.
Key Takeaways for Retirees
Long-term care costs are escalating rapidly, and geographic location plays a decisive role in the financial burden retirees may face. In many states, annual nursing home expenses surpass $150,000, a figure capable of quickly depleting even substantial retirement funds. Given that Medicare typically does not cover extended custodial care, retirees often must depend on personal savings, long-term care insurance, or Medicaid after exhausting assets.
Careful evaluation of care costs before relocating, especially to states with high expenses, is crucial for preserving retirement security.
Financial Strategies to Strengthen Retirement
Regardless of your current financial situation, there are practical steps to enhance your financial stability:
- Increase Your Income: Consider side jobs or opportunities that supplement your main income, helping to ease budget constraints.
- Grow Your Savings: Leverage the power of compound interest by starting early and working with a financial advisor to create a plan that aligns with your retirement goals.
- Seize Opportunities: Maximize benefits available to seniors, seek out discounts, and regularly review expenses such as auto insurance to avoid overpaying. Additionally, be vigilant against common financial traps that silently erode your savings.
Planning ahead and staying informed about the true costs of aging can help retirees safeguard their financial futures and enjoy a more secure retirement.