Long-Term Care Costs Surge 50%, Threatening Financial Security for Pennsylvania Seniors
Event summary
- Home care and assisted living costs have surged nearly 50% nationwide since 2019, erasing a decade of progress in affordability for middle-income older adults.
- In 2025, the average annual income for Pennsylvanians age 65 and older was $55,938, yet long-term care costs far exceeded what most older adults can afford.
- The annual median cost of home care services exceeded $50,000 in 2024, while the median household income for someone age 65 or older was about $60,000.
- The median household age 75 and older has about $50,000 in financial assets, enough to cover roughly one year of home care or only a few months of nursing home care.
The big picture
The rapid rise in long-term care costs outpacing income growth highlights a growing crisis in affordability for middle-income seniors. This trend threatens financial security and access to necessary care, prompting calls for policy interventions to address the widening gap. The situation underscores broader challenges in healthcare affordability and the need for sustainable solutions to support an aging population.
What we're watching
- Policy Response
- Whether Pennsylvania will advance policies to close the affordability gap and protect older adults from financial ruin.
- Financial Security
- How the rising costs of long-term care will affect the financial security of middle-income older adults.
- Care Accessibility
- The pace at which families will need to deplete savings or rely on unpaid family caregivers due to unaffordable care costs.