Recent surveys show that only 14 percent of Americans have discussed future plans with a professional advisor. Experts from several financial services stress the importance of the financial planning for long-term care. In Texas and other states, there is a wide misconception about the need for long-term care in retirement.
Most Americans assume that as they move into their senior years, they will not need additional care. Close to 70 percent of elders will require long-term care, and most are unaware of the costs involved. Annual costs for nursing homes vary and can be upwards of $100,000. Another misconception is seniors assume that family members will handle their care as they age, but the emotional and physical burden is often more than a family member can bear.
Experts agree that financial advisors fail to incorporate long-term care planning into retirement plans. Advisors report that they often neglect to bring up the subject because it is a complicated, time consuming and often depressing matter. Although they understand the need, most feel it is out of their area of expertise. The planning process begins with open communication with advisors and with family members.
Failing to plan for long-term care can be a huge financial risk. A simple conversation giving family members permission to liquidate assets to provide care for an aging relative can help ease that burden. In Texas, seniors who have questions and concerns about planning for their golden years may contact an attorney who is well versed in long-term care. A lawyer can help secure an effective long-term plan to provide care and help prepare for a successful retirement.
Source: forbes.com, “Long-Term Care Planning Misconceptions Are Holding Back Advisors And Consumers“, Jamie Hopkins Personal, April 11, 2018