Mark Miller: Remaking Retirement

New Strategies for Covering Long-Term Care Costs

Mark Miller

You've heard the scary statistics: About two thirds of Americans will need long-term care. The average annual cost of a private room in a nursing home is $87,600; the length of stay can run three years or more.

Do a few quick calculations, and it's easy to get very worried about the potential financial impact on your retirement plan. But recent research is shedding new light on the risks. The key finding: The odds of needing nursing-home care may be higher than previously thought, but the length of needed care is shorter. The new data has experts talking about the implications for revamping our current approach to insuring against the risk of high long-term care expenses.

Mark Miller does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.