Long-Term Care Planning for Women

Long-term care (LTC) Planning is a crucial aspect of financial and healthcare planning for individuals as they age; however, women, in particular, face unique challenges and considerations regarding LTC. 

When you take the time to understand why LTC Planning is crucial for women, it becomes easier to see why they want effective strategies and recommendations to help them plan for their future care needs.

Specific Issues for Women and Long-Term Care Planning

1. Longer Life Expectancy:   Women tend to live longer than men, resulting in a higher likelihood of needing LTC.  According to the CDC, as of 2023, the average life expectancy at birth in the United States is 81.1 years for women and 75.8 years for men.

2. Higher Dependency Rates:   Studies show that women are more likely to need assistance with Activities of Daily Living as they age. The U.S. Department of Health and Human Services estimates that most Americans over age 65 will require some form of long-term care during their lifetime, and women constitute a significant majority of this population.

3. Caregiving Roles and Career Impact:   Women often take on caregiving responsibilities for their spouses, parents, or other family members. According to the National Alliance for Caregiving, approximately 66% of caregivers in the United States are women, providing an average of 24 hours of care per week. Many of these women reduce work hours, leave the workforce early, or delay career advancement — decisions that can significantly reduce lifetime earnings, Social Security benefits, and retirement savings.

4. Out-of-Pocket Health Care Costs:   Women often face higher out-of-pocket health care expenses throughout retirement. Factors such as longer life spans, chronic conditions, and solo aging can lead to a disproportionately higher financial burden, reinforcing the importance of building a sustainable care funding strategy.

5. The Value of Unpaid Care:   Women provide the bulk of unpaid caregiving in the U.S., collectively representing over $600 billion in annual economic value. While invisible on a balance sheet, this contribution has real financial and emotional costs, particularly when those women later require care of their own.

Long-Term Care Planning Tips for Women

1.  Start Planning As Early As Possible:   LTC Planning is most effective when it begins long before care is needed.  Tools like the HALO™ Care Planning Assessment can help your female clients visualize the potential scope, duration, and cost of future care needs — reinforcing the importance of taking action early.  The earlier clients engage in planning, the more flexibility, funding options, and control they retain over how care is delivered.

2.  Explain Their Options:   Familiarize yourself with the different types of long-term care services, such as home care, assisted living facilities, and nursing homes.  Research their costs, quality of care, and availability in your area.  Knowing about the available options allows you to help clients make more informed decisions.

3.  Financial Planning:   LTC is expensive, so assessing your client’s financial situation and exploring insurance-based strategies or other proactive ways to cover future care needs is essential.  Tools like Health Savings Accounts (HSAs), traditional LTC insurance, and life/LTC hybrid products can protect income, preserve assets, and maintain independence.

4.  Consider Caregiver Support:   If a client finds themselves in a caregiving role for a loved one, it is vital to help them find support through various caregiver support groups or by seeking respite care services.  Alleviating stress and preventing burnout is often crucial in caring for the caregiver so they can provide the best care possible.

5.  Determine Their Wishes:   Facilitate client engagement with family and loved ones about their preferences if or when care is needed, and encourage them to have a legal framework to ensure their wishes are respected if they cannot make decisions.

LTC Planning is essential for women due to their longer life expectancy, higher dependency rates, caregiving responsibilities, and disproportionate exposure to both the direct and indirect costs of care.  By planning early, exploring care options, addressing finances, and maintaining open communication with loved ones, the advisory community can help female clients ensure they receive the proper care and support when it’s needed most.

Women need help from the advisory community to integrate a Long-Term Care component into their comprehensive planning, and we look forward to working with you to address this vital topic.

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