Millennials are victims of many stereotypes, but the one that portrays them positively suggests they’re a planning generation. They research and collaborate and plan for all life’s major decisions, and their long-term care (LTC) isn’t any different. In part, millennials have learned about personal finances by observing the mistakes and shortcomings of older generations and plan to make changes.
Where Millennials stand according to Genworth:
- 69% of Millennials agree that the responsibility of providing LTC for parents or grandparents will fall on them.
- 56% of Millennials believe they’ll plan for LTC better than previous generations, mainly because they’re more aware of the challenges and believe that government programs won’t be available.1
If your children are Millennials, or perhaps you’re a part of this generation, start planning!
- Review LTC experiences from the perspective of Millennials, parents, and grandparents. Focus on the financial and caregiving pressures LTC placed within your own family.
- Considering that 70% of Americans who reach age 65 will need some care, it makes sense to reinforce the rising cost of LTC. Today’s U.S. median annual costs are $51,600 for an assisted living facility and $105,850 for a private nursing home arrangement. By 2060 these costs could reach $168,321 and $345,287 respectively.2
- Research confirms that it’s never too soon to begin making plans, and typically coverage is more affordable at younger ages when your health is better.
Millennials look at LTC planning by understanding the math behind it rather than as another financial product.
For example, purchasing LTC riders along with permanent life insurance products will advance part of the policy’s death benefit to pay for LTC. With this option, the financial burden no longer lands on the child caregiver. Another planning strategy is to ramp up your contributions in retirement plans such as IRAs and 401(k)s. Investing and building wealth now puts you in a favorable position when you need to start paying for care.
By thinking of long-term care as more personal than financial, Millennials should celebrate their planning stereotype and continue planning now for what’s going to come tomorrow. If you need information or have questions, our financial professionals are ready to help. Call us today at (540) 720-5656.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor and obtained his