Nearly half expect to be caregivers, but few plan for their own care

RADNOR, Pa., Nov 18, 2022 – Nearly half of Americans surveyed (47%) are adult caregivers,
or expect to take on a caregiving role in the next three years — but only 16% of Americans say
they are very familiar with the features and benefits of solutions that can help cover the cost of
long-term care, according to new research from Lincoln Financial Group.

Additionally, fewer than one in five Americans have begun to plan for their own long-term care
and just one in 10 have a plan for how to pay.

“November is Long-Term Care Awareness Month, and it’s a great time for families to start an
open and realistic discussion about long-term care and their wishes, before that care is needed,”
said Heather Deichler, senior vice president and head of MoneyGuard Business Management,
Lincoln Financial. “These conversations can be challenging — it’s difficult to talk about money,
illness and death, so many of us tend to simply avoid them. But it’s much worse to have a
situation arise, and not have any idea what your loved one wanted.”

Lincoln is offering three tips to help Americans make the most of these critical conversations:

Get the facts about long-term care

A recent study conducted by Lincoln Financial found that less than 25% of those surveyed
understood the features and benefits of long-term care planning products.
• Anyone could need long-term care support. People tend to downplay their personal
risk, often assuming others face a greater risk of needing care. Only 33% of those
surveyed think they will need care for themselves, while 40% believe their spouse will,
and 50% assume their parent will.
However, 70% of adults who survive to age 65 develop severe long-term care needs during their lifetime.

• A spouse is not long-term care insurance. More than half of Americans surveyed
(52%) say having a spouse is their long-term care insurance.
Unfortunately, even if a spouse agrees to be a caregiver, this assumption does not account for situations where a spouse is incapable of providing the level of care needed or needs care of their own.
• Don’t underestimate the cost of care. Americans also far underestimate the potential
cost of long-term care, believing their savings will cover their needs. Most of those
surveyed, though, guessed that a private room in a nursing home costs less than half the
realistic estimate.
Lincoln provides access to a cost of care map to learn the costs of Skilled Nursing Homes, Home Health Aides and Assisted Living Facilities in your area and across the country at www.whatcarecosts.com/lincoln. Enter sponsor code: Lincoln.

Know and share what is important as you plan for the future

The large majority of those surveyed (94%) want their loved ones to know their preferences for
long-term care.

Consider the following variables as you plan for a conversation:

• Care: Let your loved ones know your preferences. Would you like to stay in your home,
live with family or move into a care facility?
• Caregiving: While caregiving is very noble, long-term care can involve some of the most
intimate aspects of daily living, and many feel they’re incapable of providing the care a
loved one would need. Share your expectations with your loved ones and encourage them
to share their thoughts with you.
• Health-related decisions: Designate who has authority to discuss medications and
treatment and inform your physicians.
• Finances: Let your loved ones know how you will cover the costs of care. Also establish
who will have the authority to manage your finances, such as paying the household bills.
• Legal matters: Make sure you and your loved ones have a living will, a current will, a
durable power of attorney and a power of attorney for healthcare.

Talk to a financial professional

Financial professionals can play a vital role in a conversation about long-term care, and nearly all feel it is important for families to talk about their preferences before care is needed. The majority of financial professionals surveyed (96%) shared that their clients who have planned for long-term care expenses feel more confident about their financial future.

“Financial professionals have an opportunity to assist in these critical conversations with their
clients to help them think realistically about their needs,” said Bill Nash, senior vice president
and head of MoneyGuard distribution. “I watched my own parents face numerous challenges
providing care for my grandparents, at a point before long-term care insurance was well-known.
Seeing first-hand how having a plan for caregiving would have benefited my family, I strongly
believe in the value of these conversations both within families and with financial professionals.”