About the Key Private Bank Advisor Poll on Long-Term Care
Key Private Bank’s Quarterly Advisor Poll surveyed more than 147 client-facing advisors, investigating their experiences working with clients to plan for long-term care. The 12-question poll, fielded February 27, 2018 and March 16, 2018, explored the recommended timing to start long-term care planning, the biggest challenges that clients face in doing so and recommendations for communicating long-term care plans with family members.
Summary of Findings
Many advisors say that fewer than a quarter of their clients have a long-term care plan in place, citing timing and other priorities as the biggest factors for not having long-term care planning discussions.
Approximately what percent of your clients currently have a long-term care plan in place?
58%
of advisors say fewer than 25%
22%
of advisors say 25-50%
7%
of advisors say 50%-75%
1%
of advisors say more than 75%
12%
of advisors say they don't know
Starting a Long-term Care Plan
- Half (50%) of advisors also say that a good time to begin long-term care planning discussions with clients is at the outset of their relationship.
- Additionally, 46% of advisors say clients should start preparing for long-term care costs between the ages of 40 and 50.
The Complexities of Long-term Care Planning
Advisors agree that there are various complexities to long-term care planning, but the most complex component is getting clients to plan in advance:
- Convincing clients to put a long-term care plan in place in advance of needing one (52%)
- Helping clients increase savings for long-term care costs without substantially impacting other financial goals (e.g., retirement, children’s education, etc.) (44%)
- Forecasting caregiving needs and addressing coordination of care (38%)
- Transfer of financial risk to another vehicle (e.g., insurance), rather than paying full cost of care out of pocket (26%)
- Ensuring dollars intended for family members and legacy are not absorbed into cost of care planning (e.g., charitable giving, education, etc.) (24%)
Supporting Long-term Care Wishes
- When it comes to long-term care, most clients would prefer to stay at home and remain completely independent (96%), and the majority (88%) of advisors think it is somewhat likely that clients will be able to.
- Despite this preference, many advisors say only some (55% of advisors) or hardly any (22%) clients are communicating their wishes with their family.
- While 72% of advisors say purchasing a hybrid long-term care and annuity policy is the best way to plan for long-term care costs, over half (55%) of advisors say clients prefer to self-insure.