Parents’ Health Care Spending Can Be a Risk to Clients’ Retirement
August 1, 2019 by Fran O’Brien
With the number of Americans age 85 and older projected to more than double by 2040 — 14.6 million from 6.4 million in 2016 — it comes as no surprise to financial advisors that more of their clients in retirement or nearing retirement are involved in caring for aging parents.
Perhaps not surprising either is that the number of those employed as aides to help the growing population of octogenarians and nonagenarians is growing. Recent projections by the U.S. Bureau of Labor reveal that the nation’s fastest-growing job category is “personal-care aide,” which will have about 750,000 more openings by 2026. Fourth on the fastest-growing list is “home health aide,” accounting for another 450,000 jobs.
For advisors’ clients, there are costs and risks connected with this growth. If they have the means, the elderly paying for personal care will pick up the tab themselves. Otherwise, their families are likely to pay all or part of the bill. These rising costs, of course, should now be reflected in comprehensive financial and investment plans.
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