Advisors Agree Health Care Planning Important to Client Retention

That 4% is too low, especially when you consider the impact that out-of-pocket expenses will have on a client's income, regardless of how well advisors have prepared them for retirement, Carter said. "Most advisors should be better versed on the role of out-of-pocket expenses, Medicare and longevity risk," he added.

As Carter sees it, the challenge is that as clients get closer to retirement, their options become more limited and out-of-pocket costs can be as high as $240,000—not including long-term care. "Studies have shown people who live to 65 have a 70% chance of needing long-term care," he said.

Even when getting clients to talk about health care and their plans to pay for it isn't difficult, trying to determine how much a client will need to have can be a hurdle. The survey found 30% of advisors doubt their ability to even estimate how much their clients will need. Eighty percent of clients underestimate their own health care costs, according to an earlier Nationwide Financial consumer survey.

Advisors are asking for more information about health care, Carter said, and to that end, Nationwide offers personalized assessments that help advisors find up-to-date actuarial information to estimate their clients' needs. He's also seen advisors who work on teams establish one member as an expert in long-term care, Medicare and other health care related issues. Advisors who take a holistic approach to retirement, combining health care planning with more typical retirement planning, will keep more clients, he said.