The median annual cost of care in a private nursing home rose 3.4% over the past year to $77,745—far surpassing the $49,777 median annual household income for Americans, according to Genworth’s “2011 Cost of Care Survey.” And the cost of an assisted living facility rose 2.4% over the past year to $39,135.
Advisers can add long-term care cost inflation to their existing worries over the volatile stock market, soft housing market and rising healthcare costs, Genworth said. Thus, many advisers are trying to re-adjust their clients’ expectations for retirement.
“Advisers have spent their careers talking to clients about wealth accumulation,” said Colleen Goldhammer, senior vice president of long-term care distribution at Genworth Financial. “In today’s economy, a conversation that includes wealth protection is imperative in order to create a truly comprehensive retirement plan”
Goldhammer added: “The risk of an unexpected long-term care event is a common concern for many American families, and can have a significant impact on a family’s financial future. Financial advisers have a great opportunity to educate and plan with each and every client to address this very real risk.”
Genworth launched its Cost of Care Survey eight years ago to help advisers address this issue. The survey offers a range of online tools to compare the costs of a wide range of care options across the nation. It also projects future costs. This year, Genworth is making the survey available on smart mobile devices.
“With the fast-growing adoption of smart mobile devices by financial advisers, the Cost of Care Survey data and insights can now be brought into any conversation with a few clicks or taps of a device,” Goldhammer noted.