It is well-reported, but bears repeating, we are on the cusp of the largest generational wealth transfer in U.S. history. According to a new report from Cerulli Associates, in the next quarter century, Baby Boomers will pass along nearly $48 trillion in assets, and for financial professionals, the unsolved challenge remains how best to bridge the planning relationship across these financial generations.
Not as widely discussed as this generational shift in wealth is a significant parallel trend driven by the Baby Boomers: their need for long-term care. Boomers are living longer than any generation to date, and their need for care is increasing. If a person lives to be 65, it’s likely they’ll eventually need some kind of long-term care, the U.S. Department of Health and Human Services reports.
Who is providing this care? Members of the next generations — Generation X and Millennials, with whom financial professionals need to be building trusted relationships.
In the recently released 2019 Northwestern Mutual C.A.R.E. Study, we found that two in five caregivers are caring for or have provided care for a parent. In this study, caregiving is defined as a combination of practical/personal care support, emotional support and financial support, and in practice, it represents an average of eight hours of care per day and a quarter of the caregivers’ own monthly budget.