A new year often inspires people to think about their goals, priorities, and plans for the future. For many older adults and their families, this makes it an ideal time to consider long-term financial planning around home health support, assisted living, and/or nursing care. Thoughtful preparation can help ensure dignity, independence, and choice as needs change over time.
Estimating future care needs
Because no two aging journeys look the same, planning begins with understanding potential scenarios rather than predicting exact costs. Older adults and families can start by considering:
- Desired living arrangements. Some people hope to live at home as long as possible with support, while others may prefer a senior community for social activities or assisted living if care needs become complex.
- Health and mobility changes. Global research shows that chronic conditions increase with age; nearly one in three adults worldwide lives with multiple chronic illnesses. Understanding a person’s current health profile can help predict whether future care may involve rehabilitation, daily living support, or medical oversight.
- Support networks. Family availability, transportation access, and proximity to services all shape what types of care may be needed later on – and where living makes the most sense.
- Personal preferences. Some individuals prioritize privacy and autonomy, while others value a more social or structured environment. These preferences can influence the kind of care that feels right.
Rather than planning for a single outcome, families benefit from preparing for a range of possibilities, from in-home caregiving to community-based support to higher-level medical care.
Exploring financial resources
Funding long-term care can look quite different across countries, which makes it essential to explore multiple options. While programs and eligibility vary, several common resources exist across many regions:
- Long-term care insurance. Many countries offer private long-term care insurance policies or public options that help offset future care needs. Long-term care spending is rising as populations age, making early planning increasingly important. Long-term care policies often support home care, assisted living, and residential nursing care.
- Government aid and public programs. Most nations provide some form of public assistance. In Canada, provincial programs may offer home support subsidies. The government’s My Aged Care system in Australia provides assessments and funding for home care packages and residential care. In the UK and several EU countries, means-tested programs help cover certain costs for long-term support services. And in the United States, government programs such as Medicare and Medicaid offer limited coverage for home health and long-term care, depending on eligibility and medical need. Regardless of where you are, understanding local eligibility, waitlist timelines, and assessment requirements is a key part of planning.
- Reverse mortgages or home-equity programs. In many regions, older adults may access home-equity release programs to help pay for care if needed. These options can provide funds while allowing individuals to stay in their homes longer. Regulations differ widely, so families should review local guidelines and long-term implications.
- Personal savings and investments. Personal savings are still one of the most important global sources of long-term care funding. According to the World Bank, household savings rates vary significantly by country, but those who plan early, ideally before retirement, experience greater stability later in life. Even modest savings strategies can build critical flexibility.
- Family contributions. In some cultures, family caregiving and shared financial responsibility are a central part of long-term care planning. Being transparent about roles, expectations, and future needs helps reduce stress and prevent misunderstandings.
Open conversations matter
Talking openly with loved ones about future care and financial planning helps ensure that everyone understands the individual’s preferences, goals, and boundaries. These discussions can clarify who will manage care decisions, what types of support are preferred, and how expenses will be handled. Families who plan early often experience smoother transitions and greater peace of mind.
The new year can be a fresh start for these conversations. Take the opportunity to map out priorities and make sure plans reflect the values and wishes of the person receiving care.
This article is for informational purposes only and is not intended as financial advice. Individuals should consult qualified financial professionals in their region before making decisions about long-term care planning.
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Sources: World Economic Forum; OECD; Kiplinger’s; Commonwealth Fund; Canada Life; My Aged Care; IFS; Medicare