Dementia Doubled in 26 Years. Impact Devastates Savings

If someone you love is showing signs of memory loss, you are not alone. Dementia touches more families every year. The WHO reports that 57 million people were living with dementia worldwide in 2021, and nearly 10 million new cases are diagnosed every year. The climb has been steep for decades. A 2018 study in The Lancet Neurology found that the number of people with dementia more than doubled between 1990 and 2016, from 20.2 million to 43.8 million.

Cassandra Szoeke, a professor at the University of Melbourne and lead author of that study, said the growing number of people with dementia will need more professionals to care for them in the years ahead. 

The paper states that to support our community, we will need a larger workforce of trained health professionals as well as planning and building facilities and community-based services which support improved quality of life and function." — Dr. Cassandra Szoeke.

The forecast points higher. The Global Burden of Disease study projects 153 million people will live with dementia worldwide by 2050, up from 57 million in 2019.

What the Numbers Mean in the United States

The Alzheimer's Association's 2026 Alzheimer's Disease Facts and Figures report estimates that 7.4 million Americans age 65 and older live with Alzheimer's dementia today. That number could reach 13.8 million by 2060. Health and long-term care costs for people with dementia are projected to hit $409 billion in 2026, and that figure excludes unpaid caregiving.

Unpaid family caregiving in the U.S. has reached a catastrophic crisis point, valued at over $600 billion annually, with roughly 63 million Americans now serving as unpaid family caregivers, a 45% increase since 2015.

Women still suffer more memory loss than men do. This might be due to the fact that women still enjoy more longevity.

Medicare Does it Cover Dementia Care?

Many families assume Medicare will help. They are, unfortunately, wrong, often creating a major family crisis. While Medicare pays for short-term medical treatment and limited rehabilitation, it does not cover ongoing help with daily activities like bathing, dressing, or supervision due to memory loss. Medicare helps with healthcare, but Medicare is not the answer for long-term care, including dementia care. It helps only in a narrow way.

Original Medicare covers up to 100 days in a skilled nursing facility per benefit period, and only after a hospital stay of at least three consecutive days as an inpatient. After the Part A deductible, days 1 through 20 cost you nothing. Your Medicare supplement will pay through day 100, but again, only for skilled care.

Medicare does not cover custodial care, which is help with daily activities such as bathing, dressing, and eating. Supervision for someone with cognitive decline falls in that same gap. Medicare Supplement (Medigap) plans can cover daily coinsurance, but they do not add days beyond 100. Unless you have Long-Term Care Insurance, you pay for ongoing dementia care from savings and income, or family provides it. 

Learn More About Long-Term Care Insurance: LTC News Learning Center

Where Does Medicaid Fit In?

Medicaid is the largest single payer of long-term services and supports in the United States. But you must qualify. Eligibility is complex and varies widely by state. In general, you need very limited income and few assets. That is why many experts recommend building an advance plan into your retirement strategy.

How Long-Term Care Insurance Helps

Long-term care planning starts with a simple question: Who pays if you need help for years? Long-Term Care Insurance can answer it. Longevity is increasing our lifespan, but our healthspan is not catching up. The difference between healthspan and lifespan is dependency, which is long-term care.

An LTC policy can pay for extended care, including dementia care, in the setting you choose, and benefits from a tax-qualified policy are tax-free. LTC Insurance can protect your retirement funds and ease the burden on the people you love by giving you access to your choice of quality care, even at home.

Learn More: How to Apply for Long-Term Care Insurance

Your availability to get long-term care coverage depends on your health when you apply, so the best time to plan is before you develop health and memory problems. Other options include self-funding or hybrid life insurance policies with LTC benefits. The right mix depends on your health, your assets, and your family.

Next step: Use the LTC News Cost of Long-Term Care Services Calculator to see what dementia care could cost where you live. Browse the resources for planning guides. If you have a loved one who needs care now, search the LTC News Caregiver Directory to find available options where you live. Then talk with a licensed long-term care planning specialist.

Being Prepared for Aging and Dementia

Growing older does not mean you will develop dementia. Age is the biggest risk factor, but the World Health Organization says dementia is not an inevitable part of aging. You can lower your risk by staying active, managing your blood pressure and blood sugar, protecting your hearing, and staying connected with friends and family. 

Still, no habit offers a guarantee. With dementia cases rising worldwide, the wisest move is to plan for the possibility while you are healthy and able to make your own choices.