EBRI Research Gives Advisors a Powerful Case for LTCi — Here’s What It Shows
Among 2,445 workers surveyed (ages 20–74), 58% had current or past caregiving experience. And 73% expected to care for an aging adult in the future — most likely a parent or spouse.
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43% of employees believe Medicare will cover long-term care. It won’t. That gap in understanding puts millions of retirement accounts at risk. |
What Employees Don’t Know — And Why It Matters
Most employees have never estimated what care will cost. Among those who did, the majority guessed well under $25,000 per year. In reality, long-term care — whether at home, in assisted living, or in a memory care community — costs far more: the national median for a home health aide is around $54,000 annually, and assisted living averages $57,000 or more.
Without a plan, employees drain 401(k) savings, reduce work hours, or leave their jobs entirely to provide care. The financial and productivity cost to employers is significant.
Group LTC Benefits: A Strategic Employer Advantage
Employer-sponsored LTC benefits are gaining momentum. More than half of group life products sold in 2023 included an LTC or chronic illness rider. Guaranteed Issue enrollment means employees can get coverage without a medical exam — removing the biggest barrier to participation.
The result: stronger retention, reduced absenteeism, and a workforce with real protection for life’s most expensive challenge.
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