There’s been a recent growing popularity amongst employers to offer group long-term care insurance programs. According to a 2018 SHRM report, employers offering Group LTC programs increased by 10% from 2017 to 20181. Today, nearly 1/3 of employers offer their employees a group LTC program.
With the emergence of financial wellness within the workplace, employees are now looking to their employers for financial guidance both during and after their working years. One of the biggest threats to your employee’s retirement income is a long-term care event, which in 2017, cost between $47,934 - $97,455 annually (depending on the type of care received). The unfortunate reality is that many of your employees may not be financially prepared to handle a long-term care event – which is why LTC planning is important.
With advancements in medicine and technology, Americans are living longer than previous generations and the need for a long-term care solution is increasing. Based on the statistics below nearly 7.5 million Americans will need long-term care services by the year 2050.
America's growing need for LTC services
6.3 million: The number of Americans who have a high long-term care need because they need help with two or more activities of daily living or are experiencing cognitive decline.2
15 million: The number of Americans expected to have a high long-term care need by 2050.2
52.3%: The expected percentage of people turning 65 who will have a long-term care need during their lifetimes.2
Currently, there are only a few ways to pay for care since health insurance, disability insurance, and Medicare do not cover most long-term care expenses. Individuals who may need care are left to either spend down their assets to qualify for Medicaid, pay for care out of pocket, or have a long-term care insurance policy. With the likelihood of needing care on the rise, planning for long-term care expenses during your retirement is part of a responsible personal financial plan and employers are starting to take notice.
1 SHRM 2018 Employee Benefits, The Evolution of Benefits
2 National Association of Insurance Commissioners, The Center for Insurance Policy and Research, May 2016