A new report reveals that most older adults lack long-term care insurance despite the high costs of such services. With annual expenses ranging from $74,000 for assisted living to $130,000 for nursing home care, Medicare doesn't cover these needs, leaving many seniors financially vulnerable.

Only 15% of people 65 and older have long-term care coverage, according to Boston College researchers. The lack of concern stems partly from confusion about what health insurance covers. While Medicaid does provide coverage, it's only available to those who exhaust their financial resources first.

New tools are emerging to help people plan for these costs. Milliman's index suggests a 65-year-old needs $135,000 today to cover average lifetime expenses, though this varies widely. Meanwhile, Waterlily, a fintech startup, uses AI to predict individual care needs and has attracted investment from venture capital firms and insurers. With over four million Americans turning 65 this year and next, the gap between care needs and financial preparation remains a critical challenge.