The human capital flight of caregivers. We are at the beginning of a new “brain drain.” However, this time the reason hits close to home.

By the Numbers:

It is staggering: 65 million Americans provide care for an average of 20 hours per week each year, 66% of employed caregivers have had to reduce or quit work altogether, and American businesses can lose as much as $34 billion each year due to employees’ need to care for loved ones 50 years of age and older.

According to the National Alliance for Caregiving, the typical family caregiver is a 49-year-old woman caring for her widowed 69-year-old mother who does not live with her. She is married and employed. Approximately 66% of family caregivers are women. More than 37% have children or grandchildren under 18 years old living with them.

World governments agree…an LTCi plan is critical!

Consider this…Germany has required an LTCi plan for residents since 1995.  For the last 20 years, Japan has required an LTCi plan for those 40 and older. You can purchase an LTCi plan in Canada and France, and just in case you think socialized medicine will fix everything…in Great Britain, the NHS will only pay for the long-term care of those who qualify (think Medicaid). Anyone with more than 23,000 pounds (self-funders) are realizing that they have to pay for their long-term care.

I have heard this number a thousand times, so forgive me for repeating this statistic once more. According to the U.S. Department of Health and Human Services, more than 2/3 of us who live to retirement will have an extended care need. The U.S. tried mandating an LTCi plan, but the CLASS Act failed. I won’t go into the reasons here, but did you know that the U.S. Federal Government has offered an LTCi plan to federal employees for more than a decade?

Now there are tax advantages and other incentives for you to have an LTCi plan at your organization. The Federal Government is giving you every reason to have a plan in place to protect the assets and family members of your most valuable resource. You have planned for almost every other contingency! Yet, again, employers in America lose $34 billion each year due to the costs associated with employees who are caregivers.

Have a plan!

If it has been a while since you’ve looked at an LTCi plan as an individual or through your employer, take another look. It could save your assets…and a whole lot more!

Sincerely,

John F. King, CLTC