Retirement Where, who, and how of long-term care

At home, I run a tight ship, but I never pencil in time to be sick. It’s not as if I sit down with my husband and say, "Next Tuesday I am going to feel awful, can you get the kids and make dinner for the next few days?” If only we had advance notice to plan for the care we want and need.

Maybe we can. UBS estimates that 85% of couples who are 65 and older will need some form of long-term care during their lives [1]. Given this insight, the topic of long-term care will become increasingly important to address as we and our loved ones age. Having this conversation can be challenging, awkward and overwhelming. So, whether you are planning care for yourself or starting a conversation with a loved one, be sure to be open and empathetic to the emotions that may arise as a result of the discussion.

Additionally, do your homework. Many Americans are not familiar with what a long-term care insurance policy covers or if they even own one. Understanding your options for care and coverage before an event can help guide the conversation. A good place to start is the recent UBS CIO report, Modern retirement monthly: Long-term care costs and solutions .

Finally, when you are ready to start the conversation it’s important to address the three main components of care: where, who, and how.

First, consider where you want to receive care. Many people prefer to receive care in their home, but that may not be possible for a variety of reasons. In that case, would you consider an assisted living facility that felt like a standalone home or apartment? Would you consider relocating to be closer to children or other family members? If offered, would you like to live with family? Are there any concerns you have about receiving care in your home or a separate facility?

Second, who would you ultimately like to provide your care? If you remain in your home, would you prefer to receive care from a family member or a skilled professional? Are you comfortable with a family member managing your care? If so, who? For those with the assets to pay, would you like a family member to be educated and trained to give you skilled care?

Third, how are you planning to pay for the care? Our research shows that the average 65-year-old couple will incur over USD 270,000 of long-term care expenses in their lifetime[2]. Given costs vary by state, do you know the average cost of care in your state or desired location? Have you allocated assets to cover the cost of an extended illness or long-term care event? Do you have a long-term care insurance policy? If so, what are the details regarding coverage?

It’s important to remember that this is just the beginning of the discussion, and you may need additional time to continue the conversation. Be patient and let everyone move at their own speed. To help guide the conversation, write down what was discussed and work with your loved ones to address each question or concern. Unfortunately, things don’t get better through waiting but having your support may provide the confidence to take the next step.

Main contributor: Katie Williams, Wealth Way Discovery Strategist, CIO Americas,

[1] For a detailed explanation of our methodology, see: Crook, Michael W. and Sutedja, Ronald, Will Long Term Care Ruin Retirement Plans?, July 2016. Available at SSRN: http://ssrn.com/abstract=2813771

[2] UBS

See the full blog, Where, who, and how of long-term care , 27 October, 2023.

Read the report for more on how to prepare for long-term care Modern Retirement Monthly: Long-term care costs and solutions 25 October 2023.

For the UBS CIO's one-stop shop of retirement planning advice, whether you are saving for, transitioning to, or already in retirement, visit ubs.com/retirementguidebook