By 2030, as The Silver Tsunami of Baby Boomers fully enters retirement age, more than 70 million Americans will test the U.S. healthcare system like never before.  As they age, one undeniable truth becomes clear:  While not every American will require long-term care, every client needs a Long-Term Care (LTC) Plan.  While most will need some care, there remains uncertainty as to when, where, or how, but planning for this possibility becomes essential given the physical, emotional, and financial impact that need for care will have on families.  

For Boomers and those following them into retirement, addressing the complexities of future LTC needs is more than just about preparing for what might happen; it's about ensuring control, choice, and financial security no matter what the future holds.

Uncertainty of Care Needs:  While government statistics suggest that 60% of Americans over 65 will need some form of LTC, it's impossible to know who will need it, to what extent, and for how long.  However, ignoring the topic as a planning imperative leaves clients exposed to considerable financial and emotional stress if care becomes necessary.

The Consequences of No Plan:  Even for clients who ultimately never need LTC, not having a plan can result in missed opportunities for asset protection, tax advantages, and peace of mind.  For those who do need care, the absence of a plan can lead to chaotic decision-making, reduced control, and significant financial burdens.

A Plan Is About Control, Not Just Care:  LTC Planning isn't just about whether care will be needed…..It's about ensuring clients have choices and control over how and where they receive care, how it will be funded, and how to preserve assets for loved ones.

Protecting Loved Ones:  Those in the advisory community are in the planning business, not the hoping business, and hoping a client doesn't need care is not a plan!  Simple logic should dictate basic planning to provide clarity and reduce the toll on families and caregivers rather than guaranteeing confusion for millions and forcing them to make difficult decisions.  

Risk Management:  Clients regularly plan for risks they may never face with homeowners insurance, life insurance, disability insurance, estate planning, etc., and LTC must be viewed similarly……It must become part of a comprehensive strategy to manage life's uncertainties.

The Compliance Imperative:  Addressing Long-Term Care (LTC) isn't just a planning recommendation, as there's also a compliance imperative.  Across the financial services spectrum, many must act as fiduciaries or in the best interest of clients, which includes managing foreseeable risks associated with LTC.  Ignoring LTC planning can expose clients to financial hardship and advisors to compliance violations.  By integrating LTC into your advisory process, you fulfill your legal and ethical duties while protecting your clients' financial security.

With an advisory community hyper-focused on planning, how is it possible that less than 20% of Americans¹ have addressed LTC in any way?  Why is it so hard for most in the advisory community to see the potential impact of LTC?  And why does that reality not lead to a chorus within the advisory community that LTC must be addressed universally?  True, some Americans (your clients) won't experience the need for LTC, but integrating it as a planning consideration – based on their client relationship – is the only way to safeguard financial security, ensure care preferences are respected, preserve their assets, and spare loved ones from making rushed decisions and chaos. 

It's simply time to recognize that PLANNING for Long-Term Care is no longer optional.....

¹  Surveys by OneAmerica/Hanover Research (March 2022) and the Nationwide Retirement Institute/LIMRA (May 2023)

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