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Long-term care costs are surging

New AARP report finds expenses rising far faster than incomes

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Photo by Raj Tuladhar on Unsplash

Key Insights

  • Home care and assisted living costs have surged nearly 50% nationwide since 2019, wiping out years of progress in affordability.
  • Long-term care expenses now far outpace the incomes of older adults, leaving many unable to pay for needed services.
  • In Pennsylvania, the gap between income and care costs has reached crisis levels, according to a new AARP report.

A new report from AARP highlights a growing financial crisis for older Americans, as the cost of long-term care continues to climb faster than incomes, putting essential services out of reach for many.

According to the report, the cost of home care and other long-term care services has risen by nearly 50% nationwide since 2019. Over the same period, incomes for older adults have increased at less than half that pace, widening an already significant affordability gap.

In Pennsylvania, the situation is particularly stark. In 2025, the average annual income for residents ages 65 and older was $55,938. Yet the cost of care far exceeds that amount. A private room in a nursing home averages $155,490 per year, while a semi-private room costs $141,985. Assisted living runs about $73,206 annually, and even home health aide services cost $53,040 per year.

Threat to financial stability

These figures underscore how quickly long-term care expenses can deplete savings and threaten financial stability. For many older adults, even a year of care can exhaust a lifetime of savings.

“Home care and other long-term care services have quickly become increasingly unaffordable in recent years,” said Bill Johnston-Walsh, AARP Pennsylvania state director. “As costs rise faster than older adults’ household incomes, many families must deplete savings, rely on unpaid family caregivers, or go without needed care.”

The report also points to broader national trends. From 2019 to 2024, the median annual cost of home care services increased by nearly 50%, while median household income for those 65 and older rose by less than half that rate. By 2024, the typical older household earned about $60,000 annually — barely enough to cover a year of home care, which now exceeds $50,000.

Savings fall short

Savings offer little cushion. Households aged 75 and older have a median of about $50,000 in financial assets – enough to pay for roughly one year of home care, or just a few months in a nursing home.

Advocates warn that without policy changes, the affordability gap will continue to grow, forcing more families into difficult choices about care. AARP is urging Pennsylvania lawmakers to pursue solutions that expand access to affordable care, protect older adults from financial hardship, and support services that allow people to remain in their homes as they age.

With costs rising and incomes lagging, the report concludes that long-term care affordability is no longer a future concern — it is an urgent issue demanding immediate action.