Protecting a client’s assets from the high cost of long-term-care is emerging as one of the most pressing problems for advisors, according to a study by Lincoln Financial.
The survey, which polled 1,186 consumers and 373 financial advisors, shows that less than 40 percent of consumers have discussed long-term-care planning with their advisors, and less than one in 10 advisors has implemented a long-term-care solution for their clients.
“Unless you’ve experienced a long-term-care event for yourself or a loved one, you may not realize the impact it can have on your financial security—it can be one of the biggest challenges any of us will face in our retirement years,” says Will Fuller, president of Lincoln Financial Group Annuity Solutions, Lincoln Financial Distributors and Lincoln Financial Network. “This study demonstrates the opportunity for advisors to bring valuable expertise to their clients around planning for long-term care expenses.”
Only 22 percent of those surveyed believe they are likely to need long-term care and 73 percent significantly underestimate the costs associated with long-term care. However, estimates are that a person 65 years has a 70 percent chance of needing long-term care.