In another newly released survey this month honoring long-term care awareness, Lincoln Financial Group asks its respondents what the largest barrier is to a comfortable retirement, finding that investors and financial advisors are completely misaligned in their views.
According to the research, 59% of consumers say inflation is the biggest threat to their retirement savings, while another 51% point to the economy. On the other hand, 50% of advisors believe consumers should focus their attention on the need for long-term care in retirement, including expenses towards health care and personal needs in the future.
Currently, Lincoln Financial says the national average for home care or assisted living is at $4,000 a month and could reach close to $9,000 when factoring in assisted living communities. These costs could potentially eat a sizable chunk of retirement savings, therefore, considering long-term care when contributing towards retirement is crucial.
“With a record-setting wave of Americans reaching retirement age next year, the time is now – more than ever – for consumers to factor long-term care into their retirement plans,” said Mike Hamilton, vice president, MoneyGuardBusiness Management at Lincoln Financial Group. “A long-term care solution can help cover expenses and add a layer of financial security to your retirement savings.”
The research finds that an overwhelming number of respondents do understand the severity of long-term care, with 96% of Americans agreeing on the importance of planning for the future. Another recent Transamerica survey also reported on this consensus—74% of respondents in their study completely agreed that extended care should be a part of retirement planning. Still, only 19% have actually started planning for it, stated Lincoln Financial.
“It’s easy to picture the fun parts of retirement, like relaxing on the beach, but consumers should also be considering the expenses they might face as they grow older,” said Jared Nepa, senior vice president, head of Life and MoneyGuard Distribution at Lincoln Financial.
Past research from the organization shows that individuals want their advisors to bring up the topic of long-term care planning, as nine out of 10 Americans believe financial professionals should talk about it with clients, with four out of five expecting it.Additionally, two out of five say a focus on long-term care would make them more likely to work with a financial professional.
This is despite the fact that just fewer than two out of five have discussed long-term care planning with a professional, with 42% adding that their advisor had never raised the topic.
SEE ALSO:
- Almost Half of Workers Plan For Long-Term Care Needs
- Younger Workers Likelier to Become Caregivers
- Caregivers Worried LTC May Impact Retirement Confidence
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
