Long-Term Care Awareness: Why It Matters for Plan Sponsors
As the workforce ages and caregiving responsibilities increase, long-term care (LTC) is becoming a critical issue for employers and plan sponsors. Yet, many organizations still overlook LTC in their benefits strategy. Raising awareness and offering support for long-term care planning can help employees prepare for the future—and protect their financial wellness today.
According to the Administration for Community Living, 70% of Americans turning 65 will need some form of long-term care during their lifetime. Despite this, only a small percentage of employees are actively planning for these costs, and even fewer own long-term care insurance.1
For plan sponsors, this presents both a challenge and an opportunity:
- Challenge: Employees may face unexpected caregiving responsibilities or LTC expenses that disrupt their financial plans and productivity.
- Opportunity: Sponsors can offer education, resources, and benefits that empower employees to plan ahead and reduce stress.
One of the biggest barriers to LTC planning is misinformation or lack of information. Plan sponsors can help bridge this gap by:
- Including LTC topics in financial wellness programs
- Hosting seminars or webinars on caregiving and LTC insurance
- Providing access to planning tools like savings calculators and cost estimators
- Encouraging early conversations about care preferences and legal planning
Approximately 20% of employees are also caregivers for aging family members. This dual role can lead to burnout, absenteeism, and financial strain.2 Plan sponsors can support these employees by:
- Offering flexible work arrangements
- Providing access to elder care resources
- Including LTC insurance options in voluntary benefits
- Partnering with local senior service organizations for referrals and support
Integrating LTC into Benefits Strategy
Long-term care insurance (LTCI) is a valuable tool that can help employees protect their retirement savings and reduce reliance on family members for care. While only 20–30% of employers currently offer LTC, interest is growing—especially in hybrid policies that combine life insurance with LTC benefits.3
Plan sponsors can:
- Evaluate group LTCI offerings or voluntary plans
- Educate employees on the pros and cons of different coverage options
- Highlight tax advantages and portability features
- Encourage early enrollment to lock in lower premiums
Long-term care awareness is more than a compliance issue—it’s a strategic imperative. By integrating LTC education and benefits into your plan offerings, you can enhance employee well-being, protect retirement outcomes, reduce workplace stress, and demonstrate leadership in holistic financial wellness.
We not only have advisors to help you with your financial planning but benefits professionals who can assist with any long-term care questions you and your family may have.
1 https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
2 https://homethrive.com/blog/beyond-roi-the-true-impact-of-caregiving-benefits/
3 https://www.ebri.org/publications/research-publications/issue-briefs/content/employee-perspectives-on-long-term-care
Related articles
As the year moves into its final stretch, businesses have a valuable opportunity to assess performance, refine strategies, and position themselves for success. The fourth quarter is often one of the...
Open enrollment is one of the best opportunities employers have to engage employees with their benefits package, including their workplace retirement plan. While many employees focus primarily on...
As the fourth quarter approaches, retirement plan sponsors have an important opportunity to evaluate their plan's health and position it for a successful year-end. Taking a proactive approach now can...