Long Term Care Inflation Creates New Challenges As Advisors Help Families Rebuild Nest Eggs
Genworth Extends Tools To Help Financial Professionals Meet Clients’ Needs
Richmond, Va. (May 26, 2011) /PRNewswire/ — According to Genworth’s 2011 Cost of Care Survey, the median annual cost of care in a private nursing home room rose 3.4 percent over the past year to $77,745 nationally, far surpassing the $49,777 in real median annual household income for Americans¹. The comparable annual cost for an assisted living facility is $39,135, which has increased 2.4 percent 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.
Long Term Care Conversations Drive Holistic Planning
“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, SVP, Long Term Care Distribution at Genworth Financial. “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 assist advisors in educating their clients about the impact and costs of a long term care event and begin the planning process, Genworth created its Cost of Care Survey, now in its eighth year. Covering 437 separate regions across all 50 states, and the District of Columbia, Genworth’s Cost of Care Survey offers a range of on-line tools to compare the costs of a wide range of care options across geographies, project future costs and share comparisons and calculations.
New Mobile Capability Enhances Advisor Experience
Building upon its position as the most comprehensive survey in the industry and its commitment to industry leadership, Genworth is introducing a new capability for 2011 - a mobile-friendly version of the interactive map that can be accessed from any smart mobile device. The tool will enable advisors to utilize this critical information with their clients, whether they are on-line at their desks, using the downloadable version on their laptops, or starting an initial conversation and introducing the need to get educated about care costs with their mobile phone in a casual setting. “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. To access the mobile version of Genworth’s 2011 Cost of Care Survey, go to www.genworth.com/cocpro.
About Genworth’s 2011 Cost of Care Survey
Genworth’s Cost of Care Survey is the most comprehensive study of its kind, covering nearly 15,500 long term care providers nationwide. The survey includes 437 regions, which cover all Metropolitan Statistical Areas defined for the 2010 U.S. Census. Genworth annually surveys the cost of long term care across the U.S. to help Americans plan for the potential costs associated with the various types of care available in their preferred location and setting. CareScout®, part of the Genworth Financial family of companies, has conducted the survey since 2004. Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997. Genworth’s 2011 Cost of Care Survey was conducted during January, February and March 2011.
About Genworth Financial
Genworth Financial, Inc. (NYSE:GNW) is a leading Fortune 500 insurance holding company with more than $100 billion in assets that is dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management - and mortgage insurance that helps consumers achieve homeownership while assisting lenders in managing their risk and capital.
Genworth has approximately 6,500 employees and operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit Genworth.com. From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of Genworth.com.
¹Source: Income, Poverty, and Health Insurance Coverage in the United States: 2009, U.S. Census Bureau, September 2010.