Retirement & Financial Planning Report

Nursing home costs are sky high — but you haven’t seen anything yet. The national average is now about $110 per day, or $40,150 per 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 shelf homes, as much as $100,000 a year in some cases. And, alarmingly, 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. What to do? Consider buying long-term care insurance to help cover those costs.