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Who Will Care For Aging Clients?
Even wealthy clients shouldn’ t underestimate the cost of caregiving. By Ben Mattlin
WITH THE POPULATION AGING AT A RAPID pace, demand for caregivers is at an all-time high. But experts warn that the supply of people who can serve caretaker roles is impossibly strained— and the current immigration crackdown is making the situation worse.
“ What we are dealing with is a societal crisis caused by a convergence of the graying of the population [ and ] a younger population that’ s insufficient... to support the aging population,” says Len Hayduchok of Dedicated Financial Services in Rehoboth Beach, Del.“ Unless there is a marked shift in the value system of society … those who do not have support will have a dismal outlook.”
Your own clients might be worried about how to care for their aging parents— as well as how to provide for themselves when they age. Given the immense problem, what guidance should advisors be providing?
There are no easy answers, say experts in eldercare, but that doesn’ t mean you can ignore the issue.“ Financial advisors need to be starting every conversation, and I mean every conversation, with,‘ How will long-term-care issues affect you?’” says Cathy Sikorski, an elder-law attorney in Pottstown, Pa.“ This is not just a conversation for old people. Long-term care is affecting entire families, from the very young to the very old.”
The first problem to address is cost. Home care for an aged person might be needed for months or even years. And your clients might not realize that medical insurance and even Medicare( which covers those age 65 or older) do not pay for this care( though the programs might cover temporary rehabilitation assistance after a patient is injured or ill). While Medicaid does provide some longterm care, you must be impoverished to qualify for it.
But even the wealthiest clients shouldn’ t underestimate the cost of ongoing care. According to a recent survey by the longterm-care insurance provider Genworth, the median annual cost of eldercare could be anywhere from $ 80,000 to $ 130,000, de-
46 | FINANCIAL ADVISOR MAGAZINE | NOVEMBER 2025 WWW. FA-MAG. COM