As Americans live longer and healthcare costs rise, long-term care (LTC) planning is quickly becoming one of the most important and overlooked parts of a comprehensive retirement strategy.
In 2025, retirees face a combination of inflation, longevity risk, and family strain, creating demand for proactive planning.
As a financial professional, clients trust you to help them protect their financial plans for the future, so if you’re not talking to them about care planning, now is the time to start.
Below, we’ll explore the key trends shaping LTC in 2025 and how you can turn those risks into opportunities to strengthen your clients’ plans.
Is Care Planning Getting More Expensive in 2025?
Yes, LTC costs are rising faster than many retirees expect. Between 2023 and 2024, the average annual cost of a semi-private nursing home room increased by 7% to $111,325, while private rooms rose 9% to $127,750. These numbers are expected to increase throughout 2025.
In-home care services, many retirees’ preferred way of receiving care, are becoming more expensive due to ongoing healthcare inflation. This trend is making it harder for retirees to afford care without compromising their retirement savings or their preferred method of receiving care.
How Does Rising Life Expectancy Increase the Risk of Needing LTC?
Today’s retirees are healthier and living longer than ever before, but that extended life expectancy comes with new risks. As longevity increases, so does the likelihood of developing conditions that require ongoing support.
Here’s why rising life expectancy leads to greater LTC risk:
- Greater likelihood of chronic illness or disability: The longer someone lives, the more time there is for age-related health issues to develop
- Higher risk of cognitive decline: Dementia and Alzheimer’s disease become more common with age, especially past age 85
- More years of potential physical decline: Tasks like dressing, bathing, and eating often require assistance as people reach advanced ages
- Increased financial exposure: Extended care needs can last several years and cost hundreds of thousands of dollars if not planned for in advance
The truth is, in today’s environment, a retirement plan without a care plan is incomplete. Financial professionals must help clients prepare for the real possibility of needing care and build protection into their financial strategy sooner rather than later.
Related: Why Care Planning is Vital to a Financial Professional’s Business
What Challenges Does the Sandwich Generation Face When Planning for Care?
The sandwich generation faces unique financial and emotional challenges when planning for care. This group, making up nearly a quarter of US adults, is characterized as caring for aging parents over 65 and dependent children or adult children.
These dual caregiving roles can lead to the following:
- Strained finances as they try to balance college costs, daily living expenses, and eldercare
- Limited time for retirement planning due to caregiving demands
- Delayed personal care planning as their focus remains on supporting others
How to Incorporate Care Planning into Retirement Conversations
Financial professionals can incorporate care planning into retirement conversations by proactively addressing the potential need for LTC before a care event occurs. The best time to discuss care planning is when clients are still healthy and can make informed decisions about their future.
Here are some key life milestones to use as natural entry points for conversation:
- Approaching retirement or transitioning from full-time work
- Taking on caregiving responsibilities for a parent or spouse, often triggering personal reflection on future care needs
- Turning 50, which is when clients are in better health and have access to more options with potentially lower costs
Related: Turn Stagnant Assets into Tax-Advantaged Care Planning Solutions
How Can Financial Professionals Position Themselves as Care Planning Experts?
With more families facing the emotional and financial realities of aging, those who prioritize care planning stand out as holistic, forward-thinking professionals.
Here are three ways to strengthen your role as a care planning go-to:
- Offer LTC-focused content: Host LTC workshops or share relevant articles on your social media
- Integrate care planning into client reviews: Use annual reviews, life milestones, or financial check-ins as opportunities to bring up care planning needs
- Leverage partnerships: Working with specialists, such as FIG’s Care Planning Division, can give you access to the tools, case support, and coaching you need to add care planning to your practice seamlessly
Connect with the Care Planning Division today if you’re ready to position yourself as a care planning expert for your clients.
