Elder Care Costs Wipe Out Family Wealth for Nearly 11% of Americans by 2022
Updated
Updated · The Washington Post · Jul 23
Elder Care Costs Wipe Out Family Wealth for Nearly 11% of Americans by 2022
1 articles · Updated · The Washington Post · Jul 23
Summary
A Washington Post analysis of Americans who died between 2006 and 2022 found nearly 11% were left with nothing after out-of-pocket elder care costs, up from 6% in 2006-2010.
Median spending in the final decade of life was $19,179, but 1 in 6 spent more than $50,000 and 1 in 20 topped $100,000; the figures likely understate the burden because assisted-living housing costs are only partly captured.
The hit is steepest for poorer families: 41% of the bottom wealth fifth ended with nothing, while many adult children also drained their own savings to cover parents' dementia and assisted-living bills.
Assisted-living costs have surged—up 44% in five years—with a 2025 median of $74,400 a year, while private nursing-home rooms reached $129,575, pushing multiyear dementia care toward $1 million.
Medicare usually does not cover long-term care, only 3% of adults carry long-term-care insurance, and families who fall back on Medicaid can still lose a home through estate recovery, narrowing the much-discussed $68 trillion-$84 trillion wealth transfer.
The US caregiver-to-senior ratio is collapsing. With low pay and high burnout, who will care for America’s aging boomers?
Medicaid can seize a family home to cover care costs. What little-known legal strategies can protect your parents' largest asset?
The $84 trillion wealth transfer is here. Why are most families inheriting financial burdens instead of the promised riches?
The $100,000 Crisis: How Soaring Elder Care Costs Are Destroying Family Wealth and Deepening Inequality in America
Overview
America faces a growing elder care crisis as the population over 65 rapidly expands, creating huge demand for long-term care. Nearly everyone will need some form of care, but costs are extremely high and rising, often exceeding $100,000 a year for facility care. Even more affordable options still take a large share of family income. The system relies heavily on unpaid family caregivers and only provides public support after families have spent most of their savings. This cycle erodes family wealth, deepens inequality, and leaves many older adults and their families struggling to afford the care they need.