How long will your parent's savings actually last?

By Todd Whitehurst · Reviewed August 2026

There's a rough way to estimate this yourself, and it's worth doing before a real financial advisor builds the actual plan. This page walks through the simple version — not a substitute for real financial planning, but a reasonable starting estimate.

The simple version of the math

At its most basic: available assets ÷ (monthly care cost − monthly income) gives you a rough number of months. If your parent has $150,000 in savings, a care cost of $6,000/month, and $2,500/month in Social Security and pension income, the math looks like: $150,000 ÷ ($6,000 − $2,500) = about 43 months, or roughly 3.5 years.

This is a simplified illustration, not a projection for your parent — it doesn't account for investment growth or loss, inflation in care costs (which tends to rise faster than general inflation), taxes, medical expenses outside of care costs, or changes in care needs over time. Treat it as a rough starting point, not an answer.

A framework for building your own rough estimate

Total the available assets. Savings, investments, and — if it's genuinely on the table — home equity. The Home Equity Calculator can help estimate what a home sale would actually net.
Estimate the real monthly care cost. Use the Full Cost Comparison Calculator or Stay or Go Calculator to get a realistic monthly figure for the specific care option being considered — these are planning estimates, not guarantees.
Subtract predictable monthly income. Social Security, pension income, and any annuity payments reduce how much needs to come from savings each month.
Divide assets by the monthly gap. That gives a rough number of months the savings alone would cover, all else being equal — which it usually isn't.
Take this rough number to a financial advisor for an actual projection that accounts for investment returns, inflation, taxes, and changing care needs over time.

A note on this page: This is a simplified educational framework, not individualized financial, investment, or tax advice, and it isn't a substitute for a real financial plan. It doesn't account for market performance, inflation, taxes, or changes in your parent's health or care needs. A licensed financial advisor can build an actual projection based on your parent's complete financial picture — this page is meant to help you walk into that conversation with a rough starting number, not replace it.

Frequently asked

Does this estimate account for investment growth?

No — this simplified version assumes a flat pool of savings being drawn down, which is a conservative but imprecise assumption. A financial advisor can model actual investment performance, which could extend or shorten the real timeline.

Should I include home equity in the total?

Only if selling or borrowing against the home is genuinely part of the plan. If your parent intends to keep living there, counting that equity as available savings would overstate what's actually accessible.

What if the number is smaller than expected?

That's common, and it's worth revisiting sooner rather than later — the Paying for Care hub covers other options, including Medicaid planning and VA benefits, that a financial advisor or elder law attorney can help evaluate.

Sources & methodology

Reviewed August 2026. The example figures above are illustrative only, not projections. This page describes a simplified planning framework informed by general financial planning practice — it is not a substitute for a licensed financial advisor's projection.

Genworth Cost of Care Survey — national and state-level long-term care cost benchmarks, referenced via Find Local Help
Social Security Administration — benefits overview, ssa.gov

Next Step

Get the real numbers first

Run the actual care cost and home equity numbers before doing this math for your family.

Compare Care Costs → Back to Paying for Care →