At over $8000.00 per month ($96,000 per year), nursing home costs can wipe out most retirement plans. Regardless of how carefully you have saved and invested your money, the results can be ruined if you or your spouse require long term care. With nearly 70% of people over the age of 65 needing some type of long term care in their lifetime, the odds are high that you will have to face this reality. Despite this risk, a recent study has shown that most advisors are not even discussing long term care with their clients.
According to a financial-planning.com article titled, “Long-Term Care Takes Back Seat on Client Priority List”, most advisors are “not talking to their clients about long-term care and the potential negative impact it could have on their clients’ retirement plans.” The article highlights a survey conducted by Lincoln Financial which found that only 42% of advisors discussed long-term care with more than half of their clients. Only 18% discussed it with more than 75% of their clients. According to the financial-planning article, the reasons for this may include:
- Advisors are focused on addressing their clients’ primary concerns of retirement planning and minimizing taxes.
- Advisors are not comfortable discussing long term care with their clients.
Whatever the reason for advisors not discussing long term care with their clients, it is essential that clients educate themselves on the potential risks and take steps to protect themselves and their loved ones. Don’t wait as many clients unfortunately do and it’s too late to plan. Consult with an elder law attorney to help you make an informed decision.