Why Extended Care Planning Matters for Your Retirement Strategy
Planning for extended care expenses is one of the biggest financial challenges retirees face. According to the U.S. Department of Health and Human Services, roughly 70% of people over age 65 can expect to need some form of extended care services during their lifetime.¹
For Fort Myers and Southwest Florida retirees, understanding extended care options—and what they cost—is a critical part of building a sound retirement approach.
What Is Extended Care?
Extended care isn’t a single service. It’s a broad category covering the medical and non-medical support needed by individuals with a chronic illness or disability, most often associated with aging.
Extended care services can include:
- Help with daily activities — dressing, bathing, using the bathroom, or getting to appointments
- Skilled nursing care — more intensive therapeutic and medical treatment requiring licensed medical personnel
- Home health care — professional or aide-provided assistance in your own home
Where Is Extended Care Provided?
Extended care can be delivered in several settings, including:
- At home
- At a community center
- In an assisted living facility
- In a skilled nursing home
It’s also worth noting that extended care isn’t exclusively an “elderly” concern—people of any age can need these services due to illness or disability.
How Much Does Extended Care Cost?
Extended care costs vary significantly by state and region. Based on national data:
- Skilled nursing facility (single occupancy): $105,850 per year on average
- Assisted living costs (single occupancy): $51,600 per year on average
- Home health aides: $24 per hour on a median basis, with rates increasing when licensed nursing care is required²
Because costs vary by location, Southwest Florida retirees should research current local rates for assisted living and skilled nursing care in their specific area, as regional pricing can differ from national averages.
Paying for Extended Care: What Are Your Options?
Extended care is often provided informally by family members or friends. While this can reduce costs, it can also place a significant burden on loved ones—one that tends to grow as care needs increase over time.³
For those who prefer not to rely solely on family support, there are two primary paths for paying for extended care:
1. Self-Insuring
Many people self-insure by default, simply because they haven’t made other arrangements. This approach relies on personal savings and investments to cover extended care costs if and when they arise.
2. Purchasing Extended Care Insurance
Long term care insurance—also called extended care insurance—can help cover a range of care levels, including:
- Skilled care
- Custodial care
- In-home assistance
This option is designed to help protect assets, preserve dignity, and maintain independence during a time when care needs may increase.
Choosing the Right Extended Care Strategy
There’s no single right answer when it comes to extended care planning. The right approach depends on your financial situation, family circumstances, and personal priorities around independence and asset protection.
If you’re a Fort Myers-area retiree working through extended care planning as part of your broader retirement strategy, ASOFSP can help you evaluate self-insuring versus extended care insurance based on your specific goals.
Frequently Asked Questions
What is extended care?
Extended care refers to a range of medical and non-medical services for people with a chronic illness or disability, including help with daily activities, skilled nursing care, and home health care.
What is extended care insurance?
Extended care insurance, also known as long term care insurance, is a policy designed to help cover the cost of extended care services, including skilled nursing, custodial care, and in-home assistance.
How much does extended care cost per year?
National averages show skilled nursing facility care costing around $105,850 per year and assisted living costing around $51,600 per year, though actual extended care costs vary by state and region.
What percentage of people need extended care?
The U.S. Department of Health and Human Services estimates that about 70% of people over age 65 will need some form of extended care services at some point in their lives.
Is extended care only for elderly people?
No. While extended care is most commonly associated with aging, people of any age can need these services due to illness or disability.
What’s the difference between self-insuring and buying extended care insurance?
Self-insuring means relying on your own savings and investments to pay for care if needed, while extended care insurance involves purchasing a policy that helps cover costs for skilled care, custodial care, or in-home assistance.
Where can extended care be provided?
Extended care can be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home, depending on the level of care needed.
How can Fort Myers retirees plan for extended care costs?
ASOFSP works with Southwest Florida retirees to evaluate extended care planning options, including self-insuring versus extended care insurance, as part of a broader retirement strategy.
