Long-term Care Planning: The Critical Role Employers Can Play (Blog 4/22/25)

Did you know that one in every six people in the U.S. are 65 years old or older? (Journal of Financial Planning) It is estimated that 70 percent of this group will need some form of long-term care at some point during their lifetime. However, despite this eye-opening data, many people have not given any thought to long-term care planning, including the risks of a long-term care event happening to them personally, or how they would pay for care if it did. The best time to start looking for long-term care options is long before you need them. Still, many people wait until an emergency occurs, when the need to find long-term care placement or support for themselves or their loved ones becomes an immediate priority. This does not have to be the case.

Our podcast discussion (April 22, 2025) with two elder law experts, covered many of the topics and considerations involved in long-term care planning. During our conversation with the experts, we touched on why long-term care decisions are often prolonged or avoided altogether. It is undisputed that long-term care is an area that can be filled with difficult decisions and emotional challenges. Without access to the right information or guidance, long-term care decision-making can be stressful and confusing. If you’ve ever had to deal with Medicare and/or Medicaid, you know what we mean. 

Another reason why many people prolong long-term care decision-making is the misconception that you must be rich or of a certain income level to be able to afford long-term care planning. Our expert podcast guests acknowledged that although long-term care can be an expensive endeavor, you don’t have to be rich to be able to afford this type of support for yourself or your family. Planning and putting the right documentation in place are crucial to making the long-term care planning experience much less overwhelming.

As our population continues to age, the demand for care will continue to rise as well. This will force many employees to step into the dual role of working caregivers. Currently, about 73% of unpaid family caregivers are also working professional jobs in addition to taking care of their loved ones. This poses a great opportunity for employers to recognize and support their employees who are trying to juggle these often-competing responsibilities. In fact, employers can play a major role in empowering their employees for success, by equipping them with the support and information they need to navigate through the challenges of long-term care planning.

Here are some things employers can do now to help make the lives of their employee caregivers easier in the long-term.

1.  Encourage Open Discussions about Long-Term Care Early On

We know that having these conversations with loved ones can be emotionally charged and difficult to approach. This is even more so the case where there is an adult child/older parent relationship. During our discussion with the elder law experts, they suggested that having a 3rd-party involved in the discussion with the elderly parent, for example, will eliminate the “I’m the parent, you’re the child” attitude so the parent can hear what’s being said. Employers can provide resources regarding how to begin these difficult conversations with family members, what legal documents might be needed (i.e., powers of attorney, living wills, etc.) and how to determine the best care options for your loved ones. 

2. Promote Education and Awareness Around Long-Term Care Options

If knowledge is power, then it is safe to say that the lack of knowledge promotes a state of vulnerability. When it comes to long-term care planning, many employees are vulnerable because they simply are unaware of the many options available around caring for themselves and their loved ones. Employers can help to empower their employees by providing workshops, lunch-n-learns, and/or seminars to educate employees about the range of long-term care options. Facilitating access to geriatric care managers, elder law attorneys and long-term care experts can provide employees with invaluable insights and help to alleviate the stress of decision-making.

3. Provide Access to Retirement Counseling and Financial Planning

Although we can’t predict the future, former First Lady, Rosalynn Carter, wisely advised us that at some point in our lives, we will all be affected by family caregiving in one way or another. That being the case, having a clear retirement plan and good understanding of how to save now for the future is critical for anyone taking on a caregiver role. Employers can offer financial workshops as well as individual consultations to help arm employees and working caregivers with the knowledge needed to make informed decisions.

4. Offer Financial and Time-Off Resources for Caregiving Employees

In addition to needing flexible work schedules when providing long-term care for a loved one, working caregivers often need financial support as well. Employers can provide paid caregiver leave for employees who need to take time off from work to care for a family member. Doing so can help to offset the risks of losing the employee due to the loss of wages and the added stress on the household. The research shows that when faced with a choice between the job and their family, most working caregivers choose in favor of their families, often leaving their employer to find a more caregiver supportive environment. 

5. Provide Long-Term Care Insurance (LTCI) as a Benefit

Including LTCI options as part of the employee benefits package is an important way to help support employees for the long-term. Employers can help make coverage more affordable by partnering with insurance providers to secure group rates. Employers can additionally provide educational and counseling services to help employees gain a clear understanding of their LTCI benefits and how they help bolster their health care and retirement plans.

A Call to Action

If you are an employer looking to find ways to support your employees through all stages of their work lives, it’s time to take action and give long-term care planning the priority attention it deserves in your workplace. By educating and raising awareness around financial planning, retirement planning, LTCI and other long-term care planning components, you can prepare your employees now for the inevitable caregiving journeys they will face at some point in the future. Having to make split-second decisions about long-term care is not a good idea. Providing your employees with the tools to make informed choices ahead of time, will help protect their financial well-being and secure peace of mind for themselves and their family members. What’s in it for you? – A workforce that’s more engaged, more productive and more loyal to the company. 

Until the next blog! Thank you for being here, for reading and for caring!

Reference

‘I Haven’t Really Thought About It’: Consumer Attitudes Related to Long-Term, by Sophia Ashebir, et al, Journal of Financial Planning, February 2024.