Many Americans overlook the cost of long-term care in retirement planning, despite 80% of 65-year-olds needing it at some point. Only 3% have long-term care insurance, assuming Medicare covers it. But costs vary by state, with Mississippi offering the most affordable senior care, while California and New York are pricier.

The most expensive states for assisted living are Hawaii, Alaska, and Washington, D.C. South Dakota offers the most affordable assisted living. Nursing home costs vary, with Alaska, Oregon, and Hawaii being the most expensive. Texas has the most affordable private nursing home rooms.

A 65-year-old retiring today needs $172,500 for health care in retirement, 4% more than last year. Options for long-term care coverage include traditional or hybrid insurance, health savings accounts, and other financial planning strategies like delaying Social Security or leveraging home equity.

Planning for long-term care needs is essential in retirement. Options include traditional or hybrid insurance, health savings accounts, and financial planning strategies like delaying Social Security or leveraging home equity. Relocating to a state with lower long-term care costs can also help extend retirement funds.

Read more at Yahoo Finance: Over 80% of retirees fail to plan for future health costs. How to save thousands depending on where you live in the U.S.