According to the U.S. Census Bureau, "the year 2030 marks a demographic turning point for the United States.  Beginning that year, all baby boomers will be older than 65.  This will expand the size of the older population so that one in every five Americans is projected to be retirement age." This seismic demographic shift affects multiple generations, and more than ever, Americans must have some of the most challenging conversations of their lives: Talking with aging parents about their finances and planning for the future.

According to Ken Dychtwald, president and CEO of the consulting firm AgeWave, "anyone who thinks the boomers will turn 65 and be the same as the generation before is missing out on the last 60 years of sociology.   The boomers change every stage of life through which they migrate.   We weren't prepared for the boomers.   There weren't enough hospitals or pediatricians.   There weren't enough bedrooms in our homes.   There weren't enough schoolteachers, textbooks, or playgrounds.   The huge size of this generation has strained institutions every step of the way." 

Unfortunately, the typical response to an advisor's Long-Term Care Planning engagement is "we won't need Long-Term Care" or "that's what Medicare covers." If this is what your clients or their parents are saying, then it is clear they don't really understand Healthcare In Retirement and why this is an important planning item.

At one end of the spectrum, you have clients, or their aging parents, with the financial ability to address their current and future Healthcare needs.....At the other end of the spectrum, there are those without the means to do so. In any event, family discussions on the topic of Healthcare In Retirement and Long-Term Care continue to be difficult for a variety of reasons.  For those with substantial assets, it's essential to plan accordingly.  Most affluent Americans have some very good reasons to plan ahead, as the need for Long-Term Care can impact multiple aspects of their financial planning.  

For your clients with aging parents who may be unable (or unwilling) to plan ahead, don't allow them to make the mistake of believing they're off the hook.    First, there needs to be an expectation that - when the time comes - someone in the family will have to accept a "caregiving" responsibility. Caregiving is not easy; it can become more than a full-time job, with significant financial ramifications, as discussed here. 

If the thought of becoming a Caregiver isn't sufficient to create a sense of urgency, then perhaps you will encourage the family to assign someone the decision-maker role.     At some point, someone will have to make the tough call about when a parent shouldn't drive a car, when caregiving is necessary, or when living alone or in the home may no longer be an option.  This is all part of the planning PROCESS and has little to do with what insurance or Medicare may or may not cover!

However, paying for care should be part of the discussions, and even for parents who don't have the income or assets to pay for care, applying for and receiving Medicaid benefits can be tricky. Incomplete or erroneous paperwork can become expensive mistakes for the family – simply introduce them to Mr. John Pittas!!   According to the article, "a quarter of adult children, mostly baby boomers, are already providing personal care or financial assistance to aging parents".  In the case of John Pittas, his mother's Medicaid application was not approved in time to satisfy the nursing home, and her son was sued for the bill.  The article may be old, but the state of Pennsylvania, like 29 other states in our country, has even older "filial responsibility laws" that require "spouses, children, and even parents of needy adults to support the indigent. These laws were rarely ever enforced. The nursing home decided to enforce it rather than have Medicaid do what it was designed to do".

There are many reasons LTC Planning is essential in multi-generational planning.  Some reasons are more obvious than others; however, addressing the physical, emotional, and financial effects BEFORE care is needed can alleviate much of the stress on a family.  

When you're ready to ensure multi-generational security for your clients, consider the benefits of helping them implement comprehensive and customized Long-Term Care planning solutions.

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