Marlene S. Stum, Ph.D. & Claire Althoff, Family Social Science

Different opinions and beliefs about who should pay for long term care are normal and should be expected. Do you know what your parents, in-laws, a spouse/partner, or adult children think about responsibility for long term care? If not, take time to learn if you agree or disagree. Most long term care costs today are paid for from three primary sources. These sources are personal resources, private insurance, and government options. Your beliefs about responsibility for long term care financing should influence what combination of these three financing options you select.

Personal Resources
Current income and life savings of elders and family members are one source of payment for long term care costs. Income from elders may include Social Security, pensions, savings, and income from trusts and annuities. While children may choose to contribute, they are not required by law to do so. Families may also choose to sell their home or do a reverse mortgage to tap into the equity they have accumulated.

Another personal resource, unpaid caregiving, actually covers 75% of all long term care needs. Working caregivers provide an average of 22 hours per week of unpaid care. At times, caregiving responsibilities last as long as 8-10 years. Working caregivers lose an average of $650,000 in lost wages, lost Social Security contributions, and lost pension contributions.