Few Plan for at-Home Long-Term Care, per Northwestern Mutual

Most surveyed consumers anticipate needing long-term care for themselves or for family, but only a minority have planned for potential costs, according to a recently published study from the Northwestern Mutual Life Insurance Co.

The firm’s 2026 Planning & Progress Study found that 61% of surveyed adults believed they were likely to need long-term care at some point, and 56% expected to provide long-term care for a loved one. Most respondents (73%) preferred long-term care at home to living in a nursing home, assisted-living community or other medical facility. Older respondents had a higher preference for at-home care, including 83% of surveyed Baby Boomers and older adults and 78% of Generation X respondents, compared with 67% of surveyed Millennials and 61% of Generation Z respondents.

Though long-term care can impact retirement readiness, the study found that 54% of respondents had not made financial plans for their own long-term-care needs, and 60% had not prepared for others’ caring needs. Citing a 2025 Cost of Care Study from illumifin Corp., Northwestern Mutual stated that the annual cost of a home health aide providing eight hours of care per day reached $99,280 in 2025—and could exceed $500,000 by 2058, assuming yearly cost increases of roughly 5%.

Mirroring studies published in the past year by John Hancock Life Insurance Co. and LIMRA, Northwestern Mutual’s study found that respondents who worked with financial advisers were more prepared for retirement planning. Among Northwestern Mutual’s respondents who worked with an adviser, 66% felt they had a long-term care financial plan, and 58% had planned to care for others. By comparison, among respondents without advisers, 34% reported having planned for their own long-term care needs, and 29% had planned for others’ care.

“For some, protection planning is a blind spot; for others, it is a topic they defer. But avoidance can leave people exposed to significant financial risks,” said James Grogan, a wealth management advisor and managing director at Northwestern Mutual, in an email to PLANSPONSOR. “Sponsors can help by offering clear education and access to trusted advisers who can connect workplace benefits and retirement savings with broader protection needs. … The goal is not to add features for their own sake, but to give participants practical pathways to take action based on their needs.”

Coping With Caregiving Costs

The survey also highlighted the growing burden of caregiving among younger respondents, with 67% of Gen Z and 66% of Millennial respondents expecting to provide long-term care for a loved one, exceeding the national average of 56%. Meanwhile, 39% of respondents said they were providing or had provided care, including 16% who were current caregivers. Gen Z (21%) and Millennial (20%) respondents made up the highest percentage of current caregivers, compared with 15% of Gen X respondents and 10% of Boomers and older adults.

Among current and former caregivers, 69% reported taking at least one action to address the financial impact of caregiving, including 10% who said they had withdrawn retirement savings. The most common actions were reducing spending (32%), dipping into personal savings or emergency savings (25%), working longer hours or taking a second job (21%), and accumulating credit-card debt (20%).

“Financial anxiety is the No. 1 pressure point on Americans’ mental health,” Grogan said in his email. “The best counter to anxiety is understanding, planning and action.”

On behalf of Northwestern Mutual, the Harris Poll conducted a total of 4,375 online interviews with U.S. adults from January 5 through January 21, including 816 high-net-worth individuals who each had more than $1 million in investable assets, excluding retirement savings and property.