Long-Term Care Planning: Key Questions for Clients

Long-term care planning can affect clients in a variety of situations, including those with lifelong or recent disabilities, health care needs arising from old age or other factors, and even caregivers for individuals with special needs who may be supporting a loved one or dependent through a health crisis. In this way, the issue straddles the border between retirement income planning and special needs planning and is a critical point to bring up in conversations with clients.

“The role financial professionals can play in long-term care planning is beyond that of the asset manager,” Kaylee Ranck, PhD, director of College research, said in a recent College webcast about long-term care planning. “You can be that navigator in times of transition, help clients protect their dignity and avoid family conflict, as well as avoid irrevocable financial losses that drain retirement savings or can disrupt estate plans and force the loss of a home.”

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Preparing for Long-Term Care Planning

The facts about long-term care planning needs are stark: according to the U.S. Department of Health and Human Services, 70% of Americans turning 65 will need long-term health care later in their lives. AARP reports the median length of care is around two years, but for one in five Americans the duration of their care can last over five; additionally, over 53 million Americans are already providing unpaid care services to family members or other dependents due to sudden, unforeseen crises such as injuries, disabilities, or illnesses.

When considering these realities, the need for a knowledgeable financial professional becomes clear; as Joellen Meckley, JD, MHS, ChSNC®, managing director of the American College Center for Special Needs notes, financial advisors don’t need to be medical professionals or be experts on conditions or diagnoses, but they do need to understand the basics of their clients’ conditions — and quickly — to make timely and helpful decisions.

Just a few of the important factors to consider early on in a case requiring long-term care planning can include how old the client is, whether they are living with someone else or in a relationship, what their work benefit situation is (if any), whether they hold any kind of long-term care insurance or have other documents like a Power of Attorney or Healthcare Directive in place — and, most importantly, what the client is trying to solve for on behalf of themselves or their loved ones or dependents.

Caregivers’ Role in Long-Term Care Planning

Long-term care planning can get even more complicated when considering not just the needs of the person struggling with health issues, but also those of their caregivers. There are financial implications for caregivers that can go far beyond simply the care they give to another person, including how it can affect their own retirement income planning and savings, employment situation, personal income, or long-term life financial goals.

If a caregiver client is paying for a loved one’s care, a natural place to start could be evaluating how they are funding that care and whether it’s a sustainable strategy. If caregiving affects a caregiver’s work hours, options such as the Family and Medical Leave Act (FMLA) or other employee assistance programs may be on the table. Caregiving expenses can also be written off on taxes, so clients should be encouraged to keep detailed documentation.

Finally, financial professionals should be aware that caregiving can create emotional and physical strain; approaching conversations about long-term care planning with empathy and patience is key. Establishing a backup caregiving plan, including support options if the primary caregivers becomes unavailable, can also help set caregiver clients’ minds at ease.

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More From The College

Learn more about our Center for Special Needs and Center for Retirement Income

Specialize in retirement income planning with the Retirement Income Certified Professional® (RICP®) designation

Prepare to serve caregiver clients and their dependents with the Chartered Special Needs Consultant® (ChSNC®) designation