Most Americans mistakenly believe Medicare covers long-term care, leading to inadequate planning for its substantial costs. Long-term care, needed by over 80% of people, can cost thousands monthly. The misconception stems from confusion between Medicare (covering short-term care) and Medicaid (covering long-term care for the impoverished). Few Americans have long-term care insurance due to this misconception, despite its high costs. Experts recommend exploring long-term care insurance, comparing costs regionally, and consulting financial planners to prepare for this significant retirement expense.

Prepared by Olivia Bennett and reviewed by editorial team.