Long-term care planning has become an increasingly important part of retirement advice as Americans live longer and care costs continue to rise. According to the reports, the national median cost of in-home non-medical care reached approximately $80,080 annually. 

The likelihood of needing care is also significant. Studies show that 70% of adults over age 65 will require some form of long-term care, and 48% will need paid care. For RIAs, these figures highlight a growing retirement planning challenge that can directly affect withdrawal strategies, portfolio sustainability, and family finances.

How Should RIAs Discuss Long-Term Care Costs?

Long-term care expenses can materially change retirement outcomes, particularly when care is needed for several years.

According to the CareScout 2025 survey, in-home care costs approximately $80,080 annually, assisted living averages $74,400, and a private nursing home room exceeds $129,575 per year. RIAs can use these figures to stress-test retirement plans, evaluate spending assumptions, and identify potential funding gaps before care is needed.

Why Should RIAs Address Family Caregiving Responsibilities?

Long-term care often affects more than the person receiving care. Approximately 75% of all long-term care is provided by unpaid family caregivers, and the estimated value of that care exceeded $1 trillion annually in 2025.

Spouses and adult children frequently reduce work hours, delay retirement, or leave the workforce entirely to provide support. These decisions can affect household income and future wealth transfer plans.

RIAs can help clients evaluate these risks early and position long-term care planning as a way to reduce future financial and personal burdens on family members.

How Does Longer Life Expectancy Affect Retirement Plans?

Longer life expectancy increases both the probability and potential duration of care needs.

Approximately 25% of today's 65-year-olds are expected to live beyond age 90, and many individuals who require care need assistance for three years or longer. As retirement periods become longer, healthcare expenses can represent a growing share of overall retirement spending.

RIAs can use longevity assumptions to evaluate whether retirement income plans remain sustainable under extended care scenarios and help clients prepare for costs that may occur decades after retirement begins.

What Overlooked Areas Can Support Retirement Planning?

Long-term care planning is often focused on future expenses, but RIAs can also help clients identify assets and recoveries that may already exist.

One increasingly overlooked opportunity is securities class action recovery. Securities class action settlements totaled approximately $8 billion in 2025, yet many of those funds went unclaimed due to the administrative work involved in filing claims. Today, platforms such as 11th.com automate the entire process and deliver proceeds directly to client accounts. Beyond improving operational efficiency, these recoveries can help clients reclaim additional assets and support long-term financial planning.

What Should RIAs Prioritize in 2026?

In 2026, long-term care planning is becoming an increasingly important component of fiduciary retirement advice.

As care costs continue to rise and clients live longer, RIAs that incorporate long-term care into retirement income planning, estate planning, and family discussions will be better positioned to help clients protect assets.

FAQ

Why should RIAs discuss long-term care planning with clients?

Long-term care costs can significantly affect retirement income, portfolio longevity, and financial plans.

How can RIAs help clients prepare for long-term care costs?

RIAs can model future care expenses and identify potential funding gaps before care is needed.

Why should RIAs address family caregiving in retirement planning?

Family caregiving often affects household income, retirement timing, and wealth transfer plans.

How does longer life expectancy affect retirement planning?

Longer lifespans increase the likelihood of needing care and can put additional pressure on retirement assets.

What overlooked opportunities can RIAs identify for clients?

Securities class action recoveries can help clients reclaim eligible settlement proceeds and support long-term financial planning.