Retirement & Financial Planning Report

Nursing home costs are extremely expensive — but you haven’t seen anything yet. The national average recently was about $110 per day — about $40,000 a year. The lowest nursing home costs can be found in Mississippi, where the average is “only” $75 per day, or $27,375 per year. The most expensive institutions are in New York, with an average of $205 per day, or $74,485 per year. The above figures are averages so you’ll pay more for top-of-the-line homes, as much as $100,000 a year in some cases. And that’s the “good news.” Nursing home costs are expected to rise 6% to 7% per year for the next decade. At a 7% compound rate, the figures above will double by 2009. If you go into a nursing home in 15 or 20 years, the costs will be even higher. In past issues of the Retirement & Financial Planning Report we’ve pointed out that long term care insurance can really help. That still holds true.