Here's Why Extended Care Planning Remains Critical for Women

Working women ages 40 and up often juggle career and family obligations in a way that virtually no other demographic group does.

Often at the peak of their earning power, many women in their 40s, 50s, and 60s are also primary caregivers for younger members of their families, and frequently for one or more parents or in-laws as well.

Given these responsibilities, it’s no surprise that women often postpone thinking about their own future, particularly when it comes to potential extended care needs.

Managing Today’s Responsibilities Often Means Neglecting Tomorrow’s Needs

An extended care plan is especially important for women as their life expectancy is roughly five years longer than men’s, meaning many women may find themselves living for years without the assistance of a partner. But, in a 2023 Thrivent survey, only 16% of women said they have an extended care plan in place for themselves.

The same Thrivent survey shows many women recognize that paying for extended care would be a challenge, but many don’t have a full picture of what those costs are likely to be, which makes it difficult to plan for in advance. The survey also found that 78% of women don’t know enough about the cost of receiving extended care to make the right financial decision.

There’s a clear opportunity here for financial advisors to help women prepare for their future right now, while they are still in their prime working years.

How to Help Women Start Thinking About Their Extended Care Needs

Planning for extended care can be tough to do alone, no matter the stage of someone’s life. Expert financial advice can make all the difference and, ultimately, help deliver a better outcome for care.

A financial advisor can start important conversations about what extended care is, explain how it fits into a sound financial strategy, and develop a funding plan that reflects the client’s unique wishes. Part of this process is helping the client determine what her long-term extended care needs are likely to be and explaining the various ways it may impact her life — physically, emotionally, mentally, and financially.

They can also help women think through perspectives on family and caretaking. As they’re planning for the future, women probably don’t want to place additional caretaking responsibilities on their children and would rather spend their golden years building meaningful memories and connections with family.

How to plan for those long-term needs will vary depending on where she is in her life. For a woman in her 40s, it’s important she understand the different kinds of financial solutions available — from long-term care insurance to annuities — and the upsides and downsides of each.

With plenty of time ahead in her working life, it’s also the right time for a financial advisor to start a conversation about what her long-term care needs are likely to be. As she gets a clearer picture, she can start planning for extended care while still working toward her other financial priorities.

A woman in her 50s should have at least the beginnings of an extended care plan and identify which financial solutions can best cover whatever funding gaps may exist. Options to bridge those gaps include products that combine long-term care with life insurance — which are often less expensive for women than men — or, depending on her health or other qualifications, an annuity or trust.

Many women in this age group may not realize retirement planning and extended care planning aren’t the same thing, or that neither Medicare nor Medicaid cover specific aspects of long-term care. It underscores the need for financial advisors to communicate the value of developing a funding plan sooner rather than later.