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How Much Does Long-Term Care Really Cost in California?

Cypress Wealth Services

March 2023

Planning for long-term care is an important and sometimes overlooked part of creating your retirement road map. Studies have found that most people turning 65 this year will require some type of long-term care in the future, and the costs can be substantial. Have you taken this into account when creating your retirement plan? If not, now is the time.

The expense of long-term care fluctuates based on the care required and the area in which the services are being provided. According to the Genworth Cost of Care Survey, the national median cost of long-term care can range from around $1,690 per month for adult day care to around $9,034 per month for a private room in a nursing home.

Because long-term care costs in California tend to be higher than the national median, it’s a considerable expense you and your family would be wise to plan for. Read the following tips from our team of knowledgeable professionals to help you think through this piece of your financial picture.

Cost of Long-Term Care in California

The following data shows average costs based on facilities all over California, but the actual costs of care may vary in your specific location. Additionally, some long-term care needs can be fulfilled by family and friends, so depending on the support group of the person needing care, these costs may not be necessary for all retirees.

On the other hand, some old-age illnesses such as Alzheimer’s will almost always result in the need for long-term care during the late stages of the disease, despite how supportive or available loved ones are to help.

No matter what, it’s worth considering the need for long-term care costs as part of your retirement plan. The following table shows the estimated median cost of long-term care services in California:


Type of Care

Monthly Median Cost in 2023

Adult Day Health Care


Homemaker Services and/or Home Health Aide


Assisted Living Facility


Nursing Home: Semi-Private Room


Nursing Home: Private Room



Since costs in California are higher than costs in other areas of the United States, it’s important to consider how these expenses may impact your financial future. Nursing home care, whether in a semi-private room or private room, may be well above most people’s monthly mortgage payments.

So how can you build these expenses into your retirement plan if you had planned on mitigating housing costs in the remaining years of your life?

Options to Pay for Long-Term Care

If thinking about paying for these costs on your own feels overwhelming, you have options. The three most common options include:

  • A stand-alone long-term care insurance policy
  • Addition of a long-term care rider to a life insurance policy
  • Long-term care add-on to a fixed or indexed annuity

Stand-alone policies have been decreasing in popularity because the annual premiums can be quite expensive and the policies usually offer no cash benefit to survivors if the benefits aren’t used. However, stand-alone policies may be a good option for those who can afford the premiums and are relatively sure they’ll need long-term care coverage later in life.

Two better options might be to add long-term care insurance to existing contracts you own. If you have a permanent life insurance policy, many insurers offer an add-on called a long-term care rider. For an additional premium, the rider may come with death benefits.

And if you own an annuity, you may be able to purchase a similar add-on in which additional amounts would be added to your monthly annuity income if you ever need to pay for long-term care.

Make the Right Decision With a Team of Specialists

Planning for long-term care costs can be daunting, but there are a number of strategies available to help you prepare. It’s important to remember that everyone’s situation is unique and that a variety of factors should be taken into account when deciding how to incorporate long-term care into your retirement plan. While no one can predict the future with certainty, it’s wise to plan for the possibility of needing long-term care services at some point in the future.

Rather than make this important decision on your own, why not partner up with a team of experienced professionals like our team at Cypress Wealth Services? Our advisors can provide you the insight and guidance necessary to choose the best route for you and your family. Schedule a complimentary introductory meeting by giving us a call at  866.888.6563, or contact one of our offices today.


About Cypress Wealth Services

Cypress Wealth Services is an independent RIA firm providing financial planning and investment management to high-net-worth individuals, families, business owners, and institutions. Cypress Wealth Services comprises professionals with diverse backgrounds and extensive experience and qualifications. Cypress Wealth Services serves a broad range of client needs using their experience and expertise to act as a foundation for their client service process. The firm uses The Second Growth, which focuses on efficiently protecting, growing, and transferring the wealth and legacy a person has already built to their loved ones. With financial advisors in Palm Desert, CA, Tustin, CA, Athens, GA, and Anchorage, AK, the firm serves clients across the country with Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning, and more. For more information, visit or call 760.834.7250.