CareScout released their latest 2025 cost of care survey that shows moderation in some areas, but not relief.
What to know
- Assisted living: Up 5% to $6,200/month, slower than last year’s spike of 10% but still elevated
- Inflation mismatch: 5% growth exceeds the 3% inflation rider most commonly selected
- Long-term trend: Assisted living has averaged ~4.5% annual increases over two decades
Planning implications
In practice, many advisors still quote benefits based on today’s costs and apply standard 3% inflation protection. This often underestimates the real exposure. A 60-year-old client planning for care at 80 is facing a 20-year compounding window. At 4.5%, costs roughly double over that period. At 3%, they do not. That gap shows up directly in out-of-pocket risk.
The moderation from 10% to 5% is directionally positive, but it does not solve the structural issue. Care costs are still compounding faster than many plans assume.
When to raise this with clients
- When illustrating coverage for clients in their 50s or early 60s
- When a client defaults to 3% inflation without discussion
- When comparing “good enough” coverage versus future purchasing power
Bottom line
The planning gap is still widening. Advisors are anchoring to today’s costs, but the forward math is where plans break down. Even in a “cooler” year, care costs are still compounding faster than most assumptions, and that gap matters over time.
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Best,
Jesse Vickey
Long Term What?
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