The median annual cost of care in a private nursing home room rose 3.4 percent over the past year, according to Genworth’s 2011 Cost of Care Survey.
The real media annual household income for Americans is $49,777. But the cost of care in a private nursing home in 2011 is $77,745 nationally. The cost of an assited living facility has also risen, to $39,135; a 2.4 percent increase over 2010.
Long term care cost inflation is creating new challenges for financial professionals and their clients, as uncertainty about equities, a soft housing market and rising healthcare costs have stunted the growth of many retirement portfolios. Advisors today are facing a common conflict: How to help clients re-adjust expectations for retirement.
“Advisors have spent their careers talking to clients about wealth accumulation. In today’s economy, a conversation that includes wealth protection is imperative in order to create a truly comprehensive retirement plan,” said Colleen Goldhammer, senior vice president of long term care distribution at Genworth Financial, in a press release. “The risk of an unexpected long term care event is a common concern for many American families, and can have a significant impact on family’s financial future. Financial advisors have a great opportunity to educate and plan with each and every client to address this very real risk.”
To further help on-the-go advisors explain the real costs of long term care to their clients, Genworth is introducing a mobile-friendly version of the interactive Cost of Care map that can be accessed from any smart mobile device. The map compares the average costs of various care services, such as home health care and assisted living, on a state-by-state basis. It also allows financial advisors to calculate future costs. Considering that 53 percent of consumers want their financial advisors to help them understand residential care options, the map can be a useful tool for many advisors.
“With the fast-growing adoption of smart mobile devices by financial advisors, the Cost of Care Survey data and insights can now be brought into any conversation with a few clicks or taps of a device,” said Goldhammer.
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