As retirement nears, consider protection from what’s down the road
September 26, 2019 — INDIANAPOLIS–When it comes to planning for retirement, too many people–and financial professionals–are stuck looking backward, said Scott Hall, regional sales director at OneAmerica®. “Often, the Baby Boomers are still focused on asset accumulation, rather than what’s going to happen when they start using those assets for income in their day-to-day living.”
In the coming years, the first wave of Baby Boomers will turn 80. More than half of them will need some form of long-term care (LTC) at some point, and one in five will need it for more than five years1.
“What we see is that even people who have planned very carefully for asset accumulation haven’t planned for the potentially devastating effect that LTC costs can have on the kind of retirement they want,” Hall said.
Now Is The Time
In a recent “Ditch the Rear-View Mirror” presentation at NAIFA Performance + Purpose in Orlando, Florida, Hall encouraged financial professionals to consider how to protect their clients’ retirement portfolios from these costs and considering a strategy possibly including asset-based long-term care benefits. With most Baby Boomers now aged 55-74, now is the time to consider protection, while they’re still relatively healthy.
“In our conversations, we hear many people say they’ll self-fund any LTC costs they might need,” said Tracey Edgar, vice president of sales, Care Solutions, OneAmerica. “But that strategy can have a devastating effect on the assets they’ve worked so hard to build, and they don’t realize how depleting those assets before they planned to can effect a surviving spouse or a legacy they were planning for.”
Asset-based LTC solutions can help protect retirement income from the drain of unexpected expenses, while providing a death benefit if LTC benefits aren’t fully used.
“Asset-based LTC solutions can help leverage existing assets to protect income in retirement,” Hall noted. “They can reposition an underused asset, like a CD or annuity, into one that provides protection from the costs of LTC.”
For more information about OneAmerica, visit oneamerica.com.