Help Clients Feel Confident Every Single Year of Retirement

What You Need to Know

Retirement has phases.
For many clients, one stage will involve long-term care.
Clients who plan for that stage may have more choices about the care they get.

It’s funny how often we get hints about what’s to come in our own lives by listening to and learning from others’ experiences.

In college, I remember learning about careers and work through the stories of friends who were a few years older and out in the work world.

When our children were first born, my wife and I tried to learn from parents with children who were older than ours.

I’ve valued these “stories from the future” because they gave me time to consider how I might approach a similar situation or stage in life.

These days I hear more friends talking about their plans for or experiences in retirement.

Of course, the conversation is often focused on the active years of travel, golf, volunteering and time with family and friends — but we also discuss the time after that, when we all hope to age with dignity.

All the Phases

It’s important to consider all phases of retirement.

After all, about half of Americans who live to age 65 will develop a need for long-term-care services and support during their lifetime.

Planning well for this stage takes time because of the high cost of long-term care — made even more challenging by rising inflation.

According to Northwestern Mutual’s Cost of Care Calculator, the average cost of a home health aide today is $27 per hour — a cost that is projected to climb to $49 per hour by 2042.

While on average, nearly a third (31%) of current caregivers’ monthly budget goes toward providing care.

Those costs include professional support as well as expenses for services caregivers provide themselves.

To me, these “stories from the future” underscore the fact that life stages wait for no one, and that the advice people receive along the way can meaningfully shape their outcomes.

Advice-driven planning can make a big difference, especially when it comes to long-term care.

As professional “storytellers about the future,” financial advisors can deepen their client relationships — across generations — by being valued sources of advice and guidance when it comes to long-term care planning.

Planning creates more opportunity.

When it comes to long-term care, there are many factors to consider.

For example, is there a preference for living in an assisted living facility or receiving care at home? What capabilities do care providers deliver? How far away is the facility, what are the costs, and how might expenses be covered?

For a client who finds themselves needing to quickly answer these questions while also addressing the emotional stress of a loved one in need, the situation can feel overwhelming.

By planning ahead for their own long-term care needs, advisors can help clients ensure that their loved ones are never put into such a precarious situation.

And rather than placing the burden on the shoulders of others, your client can have the freedom and the power to consider the full range of opportunities for care, and to make these decisions on their own while they have the capacity to do so.