A study conducted by John Hancock Financial has found that the costs of long-term care residences are continuing to rise. More than 11,000 retirement home providers were surveyed.
Researchers discovered that the average annual cost of a private room in a nursing home in the United States is now $87,775 and $75,555 for a semi-private room. Assisted living facilities are slightly cheaper, at $39,240 a year.
"The ongoing effect of the recession on the nest eggs of so many individuals underscores the importance of planning for the future," said Marianne Harrison, President of John Hancock LTC. "John Hancock believes that long-term care insurance is an integral component of any prudent financial plan. Our cost of care studies are intended to help people better understand and prepare for their future long-term care needs."
Seniors who are looking to have a more affordable retirement may choose to live at home instead. Installing a personal emergency response system can help one age safely and independently, because this device allows users to instantly send a medical alert if they require assistance.
The cost of a private nursing room has risen by an average of 3.5 percent a year.