National Caregivers Day: Planning for Long-Term Care Costs
Every year on National Caregivers Day, we take a moment to honor the selfless individuals who devote their time, energy, and love to caring for family members in need. For many, caregiving is a labor of love—but it’s also a responsibility that comes with emotional, physical, and financial challenges.
“As parents grow older, the reality of providing care often becomes overwhelming for adult children. Long-term care planning becomes not just a consideration but a necessity for families aiming to ease the cost and stress of caregiving,” says Daniel Lerner, Executive Vice President, Investment Services at David Lerner Associates, Inc. “Consider this: a man and his wife recently moved into an assisted living facility because their children were no longer able to care for them. The man has dementia, and the monthly cost for their care is $4,500 each. Stories like these highlight the importance of planning to avoid financial strain and ensure a better quality of life for all involved.”
When is National Caregivers Day 2025?
National Caregivers Day was created in 2015 by the Providers Association for Home Health and Hospice Agencies to honor caregivers’ vital role.
The first was observed on February 19, 2016, and this day is celebrated every year on the third Friday in February. This year, the holiday falls on February 21.
Professional caregivers, totaling nearly 4.6 million in the U.S., and over 44 million family caregivers, as estimated by AARP, provide essential support to millions of people. They assist with medical needs, personal care, and end-of-life services, acting as lifelines for individuals and families during challenging times. It’s a day to appreciate their dedication and impact.
The Rising Costs of Long-Term Care
Long-term care costs have been steadily climbing in recent years, with assisted living facilities, nursing homes, and in-home care services requiring significant financial resources. Assisted living costs around $5,350 per month per person in the U.S., while nursing home care costs almost $10,000 per month for a private room.
For families unprepared for these expenses, the burden can be crushing. Many adult children attempt to provide care at home, but the emotional and financial toll can quickly lead to burnout. When care needs—such as those associated with conditions like dementia—outpace what families can provide, professional long-term care becomes a necessity.
These costs can rapidly deplete savings without proper planning, leaving families scrambling for solutions. Long-term care planning is not just about protecting assets but also about preserving family relationships and mental health.
Why Early Planning Matters
Early planning is the key to avoiding financial pitfalls and emotional stress when it comes to long-term care. Many families delay these conversations out of discomfort or denial about the aging process.
However, the earlier you start, the more options you’ll have to ensure your loved ones receive the care they need without jeopardizing your financial future.
Planning early allows families to:
- Explore various care options, from in-home care to assisted living.
- Research long-term care insurance policies, which can significantly offset costs.
- Create a financial plan that accounts for future caregiving expenses.
- Have open conversations about parents’ wishes for their care.
By addressing these topics sooner rather than later, families can make informed decisions instead of reacting to emergencies.
Long-Term Care Insurance: A Safety Net for Families
Investing in long-term care insurance is one of the most effective ways to prepare for caregiving costs. This policy helps cover the expenses of services that regular health insurance or Medicare may not fully provide, such as assisted living, in-home care, or adult daycare.
While long-term care insurance is an investment, it can save families from significant financial stress down the line. Consider this: a couple in their mid-50s can purchase a comprehensive policy for less than the monthly cost of assisted living.
However, shopping around and comparing policies is crucial to finding one that meets your family’s needs.
Look for coverage that includes:
- Flexible care options (in-home, assisted living, and nursing homes)
- Inflation protection to keep up with rising costs
- A sufficient benefit period to cover care for several years
Securing a policy early—before health issues arise—can also result in lower premiums and greater coverage.
The Emotional Toll of Caregiving
Caregiving is often more than a financial challenge—it’s an emotional journey that can take a toll on everyone involved. Adult children frequently juggle caregiving responsibilities with their own careers and families, leading to stress, exhaustion, and even resentment.
When professional care becomes necessary, guilt can add another layer of emotional complexity. Many families feel they are “letting down” their loved ones by moving them into assisted living or nursing facilities. However, it’s important to remember that seeking professional help is often the best choice for both the caregiver and the person receiving care.
Long-term care facilities are equipped to provide specialized medical attention, structured routines, and social engagement opportunities that family caregivers may be unable to offer. Understanding this can help families make peace with their decisions and focus on their loved ones’ well-being.
Creating a Care Plan for Peace of Mind
A comprehensive care plan can serve as a roadmap for families navigating the challenges of aging and caregiving.
Start by assessing your parents’ current and future needs, including medical conditions, mobility, and mental health. From there, you can:
- Identify care options that align with their preferences and requirements.
- Consult with financial advisors to explore funding solutions.
- Ensure all legal documents, such as wills and powers of attorney, are in place.
- Schedule regular family meetings to discuss caregiving roles and responsibilities.
A well-thought-out care plan reduces stress and ensures that your parents’ needs are met with dignity and respect.
National Caregivers Day serves as a reminder of the vital role caregivers play and the importance of preparing for the future. Long-term care costs are substantial, but with early planning, families can avoid the financial and emotional strain that often accompanies caregiving. Whether it’s through long-term care insurance, open family discussions, or creating a detailed care plan, taking proactive steps today can make all the difference tomorrow.
At David Lerner Associates, we believe in helping families secure their financial futures while navigating life’s challenges. If you’re looking for guidance on planning for long-term care or exploring investment opportunities to support caregiving needs, we’re here to help. Contact us today to speak with one of our knowledgeable investment counselors and take the first step toward peace of mind.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.