Navigating Long-Term Care Planning 2026: Insights You Need
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Healthcare is one of the biggest wild cards in retirement. While you can estimate lifestyle expenses, the costs of long-term care—whether at home, in assisted living, or in a skilled nursing facility—are less predictable. As people live longer and healthcare inflation outpaces general inflation, preparing for these expenses has become a cornerstone of retirement planning.
As we look toward 2026, the financial landscape around long-term care is shifting. Costs are expected to continue climbing, and funding strategies are evolving to give retirees more control, flexibility, and confidence. At Goldstone Financial Group, we help individuals and families integrate long-term care strategies into a broader retirement roadmap so healthcare needs don’t derail financial security.
Long-Term Care Cost Trends to Watch in 2026
The latest projections show that long-term care costs will continue their upward trajectory through 2026:
- Home care services: Rising demand and labor shortages are expected to push hourly costs higher, making in-home care more expensive than in past decades.
- Assisted living facilities: Monthly rates are projected to climb steadily, reflecting both staffing challenges and rising property expenses.
- Skilled nursing care: Among the most costly forms of care, daily rates could see significant increases as facilities struggle with regulatory and labor pressures.
For retirees, the takeaway is clear: healthcare inflation is real, and planning ahead is the only way to avoid unexpected shocks.
Why Long-Term Care Planning Matters
Without a plan, the cost of care can erode even the healthiest retirement savings. A few years in assisted living or nursing care, especially without private health insurance, can amount to hundreds of thousands of dollars—an expense that, if unprepared for, forces families to draw heavily from investments or sell assets.
More importantly, planning for long-term care is about protecting independence and choice. A well-funded long-term care strategy ensures you or your loved ones can select the type of care you want, in the setting you prefer, without being forced into decisions by financial constraints. Having a sound long-term care plan enhances your quality of life as you age.
Smart Funding Options for 2026 and Beyond
- Health Savings Accounts (HSAs): HSAs remain one of the most tax-advantaged ways to prepare for healthcare costs in retirement. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. As costs rise, maximizing HSA contributions now can provide a dedicated pool of healthcare dollars for later years.
- Annuities with Long-Term Care Riders: For those concerned about both income and healthcare expenses, annuities with long-term care riders can provide a dual benefit: guaranteed lifetime income and additional coverage for qualified care expenses. These products offer retirees protection against outliving their money while addressing future care needs.
- Hybrid Long-Term Care Policies: Hybrid policies combine life insurance with long-term care coverage, playing a vital role in your financial planning. If care is needed, the policy provides funds for expenses; if not, beneficiaries receive a death benefit. This structure avoids the "use it or lose it" concern of traditional policies for long-term care insurance.
- Self-Funding with Strategic Withdrawals: Some retirees with substantial assets may choose to self-fund their long-term care needs through a reverse mortgage. The key here is tax efficiency—coordinating withdrawals from taxable, tax-deferred, and tax-free accounts to minimize the tax bite while covering expenses.
The Role of Inflation-Protected Strategies
Given the pace of healthcare inflation, it’s critical to consider funding tools that grow or adjust with rising costs. Some annuities and hybrid insurance policies offer inflation protection features, ensuring your benefits keep pace with future expenses. Similarly, keeping a portion of assets invested for long-term growth provides a buffer against rising care costs.
Integrating Long-Term Care into the Retirement Roadmap
At Goldstone Financial Group, we believe long-term care planning is not a stand-alone decision but part of a larger retirement income and healthcare strategy. Our Retirement Roadmap™ process helps you:
- Evaluate the potential cost of care based on your personal health history and goals.
- Compare funding options like HSAs, annuities, and hybrid policies.
- Align care strategies with income planning, tax efficiency, and legacy goals.
This approach helps ensure that long-term care costs don’t undermine your overall retirement plan.
Why 2026 Planning is Critical
With new cost data and evolving insurance products, 2026 represents an opportunity for forward-looking retirees to re-evaluate their strategies. Acting now allows you to lock in coverage, leverage tax-advantaged accounts, and build a plan that grows with you.
By being proactive, you protect both your savings and your family’s peace of mind—ensuring that healthcare doesn’t become a financial crisis down the road.
Conclusion – Safeguarding Your Future
Long-term care isn’t just a healthcare decision—it’s a financial one. With costs expected to rise significantly by 2026, now is the time to explore smart funding options and care options that fit your retirement plan.
Whether through HSAs, annuities, hybrid policies, or coordinated income strategies, planning ahead gives you the confidence to enjoy retirement knowing your healthcare needs are covered.
At Goldstone Financial Group, our advisors specialize in integrating long-term care solutions into retirement strategies. Together, we’ll help you build a plan that safeguards your nest egg while giving you the freedom to choose the care you deserve.
Ready to plan for tomorrow’s healthcare costs today? Contact Goldstone Financial Group to get started on your personalized long-term care strategy.
Disclosure:
Goldstone Financial Group, LLC (“GFG”) is a registered investment advisor with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or qualification. This material is provided for informational purposes only. Opinions expressed herein are solely those of GFG. None of the information presented in this material is intended to offer personalized investment advice and does not constitute an offer to sell or solicit any offer to buy a security or any insurance product and is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. The information contained herein has been obtained from sources believed to be reliable but accuracy and completeness cannot be guaranteed by GFG