Do you think a nursing home costs $60,000? Actual cost is $112,000

Updated November 11, 2026, 10:50 a.m. ET

Americans dream of living a long life, but many realize they can’t afford it, according to a new survey.

Average Americans say they want to live to age 88, but can only afford to live to age 83, according to a September survey of 1,000 adults by life insurance platform Ethos. About 1 in 6 (17%) people who had retirement savings didn’t even think their money would last until age 80. Including those who had no retirement savings, 47% said they would not have money left for retirement until their 80th birthday. Half of those surveyed said they would be afraid of living to 100 because they wouldn’t have the money to survive.

Instead of fearing a long life, Americans should plan for one, financial advisors say. A good plan can provide a steady, predictable income for as long as people live, which could allow them to relax and enjoy a long retirement, they say.

“Living longer should be something we look forward to, not something we fear,” said Jason Juhl, partner and retirement expert at Carson Wealth. “We absolutely want to protect our future, but not at the expense of the health we have today. Successful retirement isn’t about dying with the biggest wallet. It’s about having the confidence to live the life you’ve worked so hard to achieve.”

Do longevity and financial fears change with age?

The good news is that fears lessen with age, according to the study.

Baby boomers wanted to reach age 89 and thought they could afford until age 87, a gap of only 2 years, Ethos said.

Younger generations showed a much larger gap between how long they wanted to live and how long they thought they could afford. Millennials wanted to live to be 88 but expect their money to last until age 81, a gap of 7 years, the survey found. Gen Z reported the same 7-year gap, but wanted to live to 89 while hoping they could afford to live to 82. Generation X was close behind with a 6-year gap, wanting to live to 89 but predicting they could only afford to live to 83, Ethos said.

“Being retired or closer to retirement, baby boomers may have a clearer view of their savings and spending, while younger adults continue to fill out the picture,” Ethos said in the report.

One thing Americans fear most that will blow up the budget

Nursing home care (37%) is the cost of aging that Americans worry most about and underestimate the most, Ethos said. Out-of-pocket health care is the second cost they are most concerned about (25%), followed by housing (18%).

Nursing home spending as a top concern “makes sense,” Ethos said. “Long-term care can last for years and often occurs just as people are living on a fixed income.”

Yet Americans continue to underestimate nursing home costs by half. Americans estimate that a year in a nursing home costs $60,829, Ethos found. However, the FLTCIP 2024 Cost of Care Survey, administered by the U.S. Office of Personnel Management, showed the national average was $112,420 per year for a semi-private room.

Learning this was a real buzz for Americans of all generations surveyed by Ethos. Generation Z was hit the hardest, with the number of people thinking they would have enough money to live 80 years falling from 61% to 51%, the report found. Millennials went from 56% to 51%, and Baby Boomers went from 67% to 62%. Generation X saw the smallest change, going from 58% to 55%.

How can Americans erase their fears?

“Plan on an income that lasts as long as you do,” said Troy Thompson, director of insurance at Ethos. “Two-thirds of Americans would accept a small, guaranteed salary for life over a larger balance that could dry up, but 40% of 401(k) holders expect their account to pay a monthly check for life. A traditional 401(k) doesn’t do that on its own.”

Some steps Americans can take to support a long life, according to financial advisors, include:

Take out life insurance. Whole life insurance can serve as a financial cushion if you need a little extra money for health care, said Steve Azoury, owner of Azoury Financial. People can withdraw what they paid in policy premiums tax-free or take out a loan that reduces the heirs’ death benefit if it is not repaid.
Plan under the assumption that you’ll live to age 90 or 95, and carefully plan when you’ll be eligible for Social Security, said Pam Krueger, founder and chief executive of Wealthramp, a fee-only advisor network. If you wait until full retirement age, 67, to benefit from Social Security, you will receive 100% of the benefit. Each year you expect FRA to earn you 8% more until age 70. “If money works at 95, 88 stops feeling like a cliff,” said Jay Pinkston, founder of Pinkston Wealth, LLC, a fee-only trust company.
Rethink the traditional retirement model with phased retirement and flexible careers, said Jordan Weiss, assistant professor at New York University’s Grossman School of Medicine, Optimal Aging Institute. An additional $1,000 monthly income equates to adding about $300,000 to your savings at a 4% withdrawal rate. » said Krueger.
Long-term health insurance isn’t cheap, but could be an option when you’re still healthy and in your 50s to help pay for senior health care, some financial advisors said.
Consider an annuity from A-rated carriers, said Stan Haithcock, owner of fixed annuity brokerage The Annuity Man. “When the basic cost of living is contractually guaranteed for life, living to age 88 or older ceases to be a financial threat and becomes something retirees can look forward to,” he said.
Think of your home equity as a reserve for your 90s, Pinkston said. “A paid-for home can help cover end-of-life care, and knowing it’s there makes it easier to spend with confidence sooner. It’s not liquid and it’s not free, so it works best as a safety net, not a spending plan,” he said.
Spend some of your children’s inheritance, Krueger said. “Why not use some of that money for your own care, safety and quality of life, so you never have to ask your children for help later? It may be the best gift you can give them,” she said.

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