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©2018 Lincoln National CorporationLCN-1996835-011718
Part 1: 2017 Long-Term Care ResearchFindings from Surveys of Advisors and Consumers
Lincoln Financial Group and Versta Research
February 2018
Lincoln Financial Group Research Conducted by Versta Research
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Contents
Page
Research Methods................................................................................................................................. 3
Consumers.....................................................................................................................................4
Long-Term Care Planning....................................................................................................................... 5
Burdens of Long-Term Care................................................................................................................... 9
Financial Planning for Long-Term Care................................................................................................ 12
Paying for Long-Term Care and Long-Term Care Insurance................................................................. 15
Advisors.......................................................................................................................................22
Approach to Financial Planning........................................................................................................... 23
Long-Term Care Planning..................................................................................................................... 28
Need for Long-Term Care Insurance.................................................................................................... 38
Appendix..................................................................................................................................... 45
2
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Research Methods
Versta Research, a third-party research firm, was commissioned by Lincoln Financial Group to design
and conduct two surveys—one among consumers and one among producing financial advisors—on
the topic of long-term care attitudes, experiences, and planning.
Consumer Survey
• Sample of 1,012 U.S. adults
• Recruited from a national online research panel used exclusively for polling and research
• Sample was stratified by age, gender, sexual orientation, race and ethnicity, region, and income
• Final data was weighted to match U.S. Census on age, gender, race, ethnicity, and region
Advisor Survey:
• Sample of 500 producing financial advisors
• Recruited from a national online business panel used exclusively for research
• To qualify for the survey, advisors had to have familiarity with long-term care or hybrid products,
minimum 5 years tenure as an advisor, and a minimum average client portfolio of $100,000
• Advisors represent a full range of channels, including independent broker dealers, wirehouses,
regional and insurance broker dealers, banks, and others
The surveys were conducted from August 28 to September 22, 2017.
3
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
CONSUMERS
4
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Attitudes Toward Long-Term CareLong-Term Care Planning
5
Consumer Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Self
Spouse
Parent
Not at all likely (1) (2) (3) (4) Extremely likely (5)
13%
13%
16%
19%
15%
11%
35%
31%
23%
21%
26%
25%
12%
15%
25%
Perceived Likelihood of Needing Long-Term Care
50% likely
33% likely
40% likely
One-third of Americans surveyed believe they will need long-term care. More believe a parent or spouse will.
Q16. How likely do you feel it is that: a. You will need long-term care sometime (1,012n); b. A parent will need long-term care sometime (766n); c. Your spouse will need long-term care sometime? (759n)
6
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Have talked with...
... About whowould providelong-term care
... About howlong-term care
would be paid for
Spouse 52% 47%
Parents 35% 27%
Children 29% 24%
Friends 22% 15%
Conversations aboutLong-Term Care
“Families should discuss plans for long-term care before they actually need it”
<1%3%
47%
50%
Agree strongly
Agree somewhat
Disagree somewhat
Disagree strongly
97%agree
3%disagree
Most agree that families should discuss long-term care planning, but far fewer have had such conversations.
Q34c. How much do you agree or disagree with each of the following statements: Families should discuss plans for long-term care before they actually need it? (1,012n) Q26. Have you had specific conversations with the following people about who would provide long-term care for you if you needed it? (597–888n) Q27. Have you had (or did you have) specific conversations with a parent about who would provide long-term care for them if they needed it? (745n) Q28. Have you had specific conversations with the following people about how you would pay for long-term care if you needed it? (600–887n) Q29. Have you had specific conversations with a parent about how they would pay for long-term care if they needed it? (702n)
7
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
“We waited too long before discussing plans and options for long-term care”
23%
29%
35%
13%
Agree strongly
Agree somewhat
Disagree somewhat
Disagree strongly
49%agree
51%disagree
Of those who have provided long-term care themselves, half say they waited too long before discussing plans.
Q50b. [IF HAS PROVIDED LONG-TERM CARE] How much do you agree or disagree with each of the following: We waited too long before discussing plans and options for long-term care? (226n)
8
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Attitudes Toward Long-Term CareBurdens of Long-Term Care
9
Consumer Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Biggest
Perceived Burdens(% all respondents)
Burdens
Experienced
by Caregivers(% saying difficult)
The emotional burden of providing care 72% 84%
The physical burden and difficulty of care 64% 62%
The time burden of providing long-term care 64% 72%
The financial burden of cost 56% 40%
The health consequences of stress 51% 46%
The financial burden of lost earnings 35% 39%
Americans surveyed acknowledge a wide range of burdens on family members who provide long-term care.
Q25. What do you think are the biggest burdens on family members who provide long-term care for loved ones? (1,012n) Q48. [IF HAS PROVIDED LTC] How difficult was it for you: a. Emotionally; b. Physically; c. In terms of your health; d. In terms of how much time it took; e. In terms of lost earnings from work; f. In terms of the financial cost of providing care? (226n)
10
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Who Will Provide Long-term Care(multiple select)
Families as Insurance
My spouse is mylong-term care
insurance
My kids are mylong-term care
insurance
27%
32%
20%
33%
44%
29%
10%
7%
Disagreestrongly
Disagreesomewhat
Agreesomewhat
Agreestrongly
35% agree65% disagree
53% agree47% disagree
43%
41%
37%
30%
3%
43%
27%
39%
27%
4%
My spouse
Rehab facility ornursing home
Home health aide
My children
Someone else Expect to provide
Want to provide
Some want and expect their children and spouses to provide long-term care if needed.
Q43. How much do you agree or disagree with each of the following statements: a. My kids are my long-term care insurance (707n); b. My spouse is my long-term care insurance (693n)? Q18. If you need long-term care who will mostly provide this care: My spouse; My children; A home health aide; A rehabilitation facility or nursing home; Someone else(1,012n)? Q19. Who would you want to provide this care? (1,012n)
11
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Financial Planning for Long-Term Care
12
Consumer Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Most believe advisors should discuss long-term care with clients. But few people have had these discussions.
13
[BASE ALL] Q26c. Conversations with your financial advisor - Have you had specific conversations with the following people about who would provide long-term care for you if you needed it? Q28c. Conversations with your financial advisor - Have you had specific conversations with the following people about how you would pay for long-term care if you needed it? Q34d. How much do you agree or disagree with each of the following statements : Financial advisors should talk about long-term care plans with their clients? (1,012n)
14%Have talked with an advisor about how they would pay for long-term care if they needed it
13%Have talked with an advisor about who would providelong-term care ifthey needed it
Long-Term CareConversations with Advisors
Financial Advisors Should DiscussLong-Term Care Plans with Clients
Agree strongly
Agree somewhat
Disagree somewhat
Disagree strongly
2%8%
57%
32%
90%agree
10%disagree
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Most agree that discussing long-term care with an advisor would be valuable, but the topic is “out of mind.”
14
[IF “HOW YOU WOULD PAY” CONVERSATION WITH ADVISOR=NO] Q31. How valuable would it be to discuss this and include it in your financial planning? (150n) Q30. Why have you never talked about how you would pay for long term care with your advisor? (150n)
Reasons for Not Talking with an Advisorabout Paying for Long-Term Care
(multiple select)
I’ve never reallythought about it
My advisor has neverraised the issue
Seems like a lowpriority right now
It is outside of whatmy advisor does
It’s too depressingto talk about
I don’t think I willneed long-term care
Other reasons
33%
32%
29%
25%
17%
11%
8%
Very valuable
Somewhat valuable
Not too valuable
Not at all valuable
7%
16%
58%
20%
Value in Including Long-Term Carein Financial Planning
78%valuable
22%not valuable
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Paying for Long-Term Care and Long-Term Care Insurance
15
Consumer Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Respondents in the consumer survey (like advisors) underestimate the cost of nursing home long-term care.
1 Source: LTCG, “2017 Lincoln Financial Group Cost of Care Survey”
Advisor Q32. What would you estimate is the average annual cost of a private room in a nursing home facility in the United States today? [mean] (476n) Consumer Q46. What would you estimate is the average annual cost of a private room in a nursing home facility in the United States today? [mean] (965n)
$103,000
$75,000
$54,000
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
Actual National Average1
Advisors Consumers
Annual Cost of Nursing Home Care as Estimated by ...
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Only a third of Americans surveyed feel confident of having the financial resources to pay for long-term care.
17
Q45. Overall, how confident are you that you will have the financial resources to pay for long-term care expenses should the need arise? (1,012n)
"How confident are you that you will have the financial resources to pay for long-term care should the need arise?”
16%
13%
37%
22%
11%
34%confident
(5) Extremely confident
(4)
(3)
(2)
(1) Not at all confident
30%not confident
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Most believe they would pay for care through Medicare, Medicaid, or health insurance.
18
Q20. [IF AIDE OR NURSING HOME WILL MOSTLY PROVIDE CARE] How would you most likely pay for this care? (623n)
How People Would Pay For Long-Term Care If Needed (multiple select)
65%
29%
60%
37%
1%
Medicare orhealth insurance
Medicaidassistance
My savings orother assets
Long-term careinsurance
Some other way
In all, 73% believe they will rely on
Medicare, Medicaid, or their health
insurance for long-term care.
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
One in seven report having long-term care insurance. Another four in ten are interested.
19
Q36. Do you currently have a long-term care insurance policy? [BASE ALL] Q39.How interested are you in purchasing long-term care insurance someday? (1,012n)
15%
43%
0%
25%
50%
75%
100%
Currently Own Interested in Buying Someday
Long-Term Care Coverage
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
The biggest reasons for not having long-term care insurance are perceptions on cost and being too young.
20
Q38. [IF NO LTC POLICY] What are the reasons you do not have a long-term care insurance policy? (791n)
Reasons for Not Having Long-Term Care Insurance(multiple select)
Too expensive
I’m too young
Plan to rely on Medicare/Medicaid
Annual premiums can keep going up
Plan to rely on own savings
Too depressing to think about
Don’t think I will need long-term care
Seems like a waste if I never need it
Insurance companies may not be able to pay in the future
Plan to rely on family for care
I’m too old
Would not qualify given my health
Other reasons
44%
33%
19%
18%
15%
13%
11%
9%
7%
7%
6%
6%
7%
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Many see good health and strong faith as the best long-term care insurance.
21
How much do you agree or disagree with each of the following statements? Q34e. I shouldn’t have to spend my savings paying for long-term care. Q43c. Leading a healthy lifestyle is my long-term care insurance. Q43d. Faith that everything will work out is my long-term care insurance. (1,012n)
Leading a healthy lifestyle is my long-term care insurance
I shouldn't have to spend my savings paying for long-term
care
Faith that everything will work out is my long-term
care insurance
19%
27%
27%
7%
10%
24%
57%
40%
40%
17%
23%
9%
74% agree26% disagree
63% agree37% disagree
49% agree51% disagree
Disagree strongly Disagree somewhat Agree somewhat Agree strongly
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
ADVISORS
22
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Approach to Financial Planning
23
Advisor Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Two-thirds of advisors take a broad, holistic approach to financial planning.
24
Q15. Which describes you better, even if neither is exactly right: I try to help clients with a broad and holistic plan for their overall financial future; I try to stay focused on the financial needs my clients express and have concerns with? Q16. How much do you agree or disagree with each of the following statements: a. It is important to me to offer advice that supports a client’s children and other family members; b. I want to give my clients emotional peace of mind that comes from financial peace of mind? (500n)
Advisors' Approach to Financial Planning
64%Take a
Holistic Approach
36% Take a
Focused Approach
99%Want to give clients emotional piece of mind that comes from financial peace of mind
86%Feel it is important to offer advice that supports a client's family
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors say clients want to plan protection for their spouses and children.
25
Q11a. How important to your clients is: a. planning for a spouse’s future in case something happens to them; b. planning for their children as part of their own financial planning? (500n)
Importance of Planning for Children and Spouses
3%
31%
<1%
2%
49%
52%
48%
15%
Importance to clients ofplanning for a spouse’s future
Importance to clients ofplanning for their children
Not at all important Not so important Important Extremely important
97% important
67% important
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors feel it is valuable to meet with client with their children or extended family.
26
Q12. How often do you meet clients along with their children or extended family members? Q13. How valuable (would it be//is it) to meet clients along with children or extended family members? How much do you agree or disagree with each of the following statements? (500n)
Frequency of MeetingClients with Family
2% 5%
48%
45%
Very valuable
Somewhat valuable
Not too valuable
Not at all valuable
93%valuable
Value of Meeting ClientsTogether with Family
2%
37%
52%
8%
61%often/sometimes
Often
Sometimes
Rarely
Never
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Most advisors see value in addressing long-term care specifically with children and extended family members.
27
Q14. [IF NEVER OR RARELY MEET] If you were to meet clients along with their adult children or extended family members, which topics would be
valuable to discuss? [IF SOMETIMES OR OFTEN MEET] When meeting clients along with their adult children or extended family members, which topics are valuable
to discuss? [BASE: IF VALUABLE TO MEET CLIENTS ALONG WITH CHILDREN OR EXTENDED FAMILY] (466n)
Topics Advisors View as Valuable to Address with Children/Extended Family(multiple select)
88%
81%
73%
65%
59%
58%
47%
44%
33%
1%
Estate planning
Long-term care plans
Wealth protection planning
Healthcare expenses
Life insurance
Tax planning
Education funding
Gift giving
Charitable giving
Other topics
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Long-Term Care Planning
28
Advisor Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Nearly all advisors agree that long-term care planning is important for clients.
29
Q9d. How important do you think it is for clients to include these things in their retirement planning: Long-term care expenses in case they need it? Q33d. How much do you agree or disagree with each of the following statements: Financial advisors should talk about long-term care plans with their clients? Q41d. How confident are you that long-term care planning is in your clients’ best interest? Q23b. How much do you agree or disagree with each of the following statements: Families should discuss plans for long-term care before they actually need it? (500n)
Families should discuss plans for long-term care before they actually need it
Advisors should talk aboutlong-term care plans with clients
Long-term care planningis in clients’ best interest
Important that clients include longterm care expenses in their planning
1%
3%
4%
5%
<1%
<1%
<1%
<1%
24%
31%
38%
45%
75%
65%
58%
50%
Disagree strongly/Not at all confident/Not at all important
Disagree somewhat/Not too confident/Not so important
Agree somewhat/Somewhat confident/Important
Agree strongly/Very confident/Extremely important
96% confident
99% agree
95% important
96% agree
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors say only some of their clients are thinking about long-term care expenses.
30
Q8d. When you begin working with clients and talk about retirement planning, how many clients are specifically thinking about and planning for how much they will need to cover: Long-term care expenses in case they need it? Q22. How many of your clients have you witnessed experiencing a need for long-term care? Q23a. How much do you agree or disagree with each of the following statements: People are not sufficiently planning for long-term care? (500n)
2%
22%
42%
28%
5%
All
Most
Some
Few
None
Clients Who Think About Long-Term Care
Expenses
Agree strongly
Agree somewhat
Disagree somewhat
Disagree strongly
<1%6%
49%
44%
“People are not sufficientlyplanning for long-term care”
92%of advisors
report having
clients who
have needed
long-term
care
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors have talked with half to two-thirds of their clients about long-term care planning.
31
Q18. With what percentage of your clients have you specifically discussed: a. whether they will need long-term care sometime; b. how long-term care costs should factor into their planning; c. long-term care insurance? Q20. With what percentage of your clients have you specifically discussed: a. who will most likely provide long-term care if they need it; b. who they would want to provide long-term care if they need it; c. how they would pay for long-term care; d. their fears about needing long-term care; e. whether providing long-term care would be a burden on their family? (500n)
Percentage of Clients with Whom Advisors Have Discussed...
63% 63%59% 57% 56% 56%
52% 50%
0%
20%
40%
60%
80%
100%
How care costsshould factor
into theirplanning
Whether theywill need long-
term care
How they wouldpay for long-
term care
Whether providinglong-term care
would be a burdenon their family
Long-term careinsurance
Their fears aboutneeding care
Who wouldmost likely
provide care
Who they wouldwant to provide
care
Mea
n P
erce
nta
ge o
f C
lien
ts
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors agree that long-term care can be difficult for clients to discuss.
32
How much do you agree or disagree with each of the following statements? Q33a. Long-term care is a difficult topic for clients to talk about; b. Long-term care is a difficult topic for me to talk about with clients; c. Clients are reluctant to talk about long-term care. (500n)
20%
21%
39%
4%
3%
33%
60%
61%
24%
16%
15%
4%
76% agree24% disagree
75% agree25% disagree
28% agree72% disagree
Long-term care is a difficult topicfor clients to talk about
Clients are reluctant to talkabout long-term care
Long-term care is a difficult topicfor me to talk about with clients
Disagree strongly Disagree somewhat Agree somewhat Agree strongly
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors say that typically they raise the topic of long-term care, and clients often prefer not to discuss it.
33
Q27. Who usually raises the topic of long-term care, you or your clients? Q28. For clients with whom you have not discussed long-term care, is it because: Usually I see no need to talk about it; Equal split—half the time they do not want to talk about it, and half the time I see no need; Usually they do not want to talk about it? (500n)
“For clients with whom you have not discussed long-term care, is it because...”
“Who usually raises the topic of long-term care, you or your clients?”
8%
32%
59%
37%
46%
17%
Advisor raises
Client raises
Equal split
Advisor sees no need to discuss
Client doesn’twant to discuss
Equal split
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
The biggest reason for client reluctance is that clients don't think they will need long-term care.
34
Q29. What are the biggest reasons clients may not want to talk about long-term care? (500n)
Reasons Clients Do Not Want to Discuss Long-Term Care(multiple select)
61%
52%
43%
42%
16%
2%
Don’t think they willneed long-term care
Low priority
Never reallythought about it
Too depressingto talk about
Cost (vol.)
Other reasons
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Clients become more interested in long-term care planning when they have experience with it.
35
Q31. What are the biggest triggers of clients’ willingness or desire to discuss long-term care? (500n)
Triggers of Clients’ Willingness to Discuss Long-Term Care(multiple select)
75%
59%
50%
49%
30%
29%
25%
15%
11%
1%
Having someone close to them need long-term care
Seeing somebody close become a long-term caregiver
Becoming a long-term caregiver themselves
Their age
Advice from family or friends
Having enough income to afford it
Advice from an advisor
Retiring from a job
Having it offered as a work benefit
Other triggers
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
The top reason advisors may avoid talking about long-term care is that clients are not interested.
36
Q30. What are the biggest reasons you may not want to talk about long-term care? (500n)
Reasons Advisors May Avoid Talking about Long-Term Care(multiple select)
45%
34%
17%
13%
12%
9%
9%
8%
8%
Clients are usually not interested
I feel it is a low priority for them
I don’t think they will need long-term care
I do not have good products or solutions to offer them
Long-term care seems too far afield from the advising I do
Cost (vol.)
I don’t want to upset them with something that is depressing
I am not licensed to sell long-term care products
Other reasons
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors believe age 50 is the ideal age to plan for long-term care, but clients typically wait until age 65.
37
Q24. In terms of a client’s age, when do you think it is ideal to talk about long-term care planning? Q25. At what age, on average, do clients actually talk with you about long-term care planning? (500n)
When to Begin Long-Term Care Planning
50 years old
65 years old
0
20
40
60
80
Ideal Age When Clients Actually Start
Med
ian
Age
of
Clie
nt
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Need for Long–Term Care Insurance
38
Advisor Survey
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Nearly all advisors feel confident about the value of long-term care products for their clients.
39
Q41. How confident are you that: e. Long-term care insurance is in your clients’ best interest; f. Your clients need long-term care insurance; g. It is smart for your clients to have long-term care insurance? (500n)
It is smart for clients tohave long-term care insurance
Long-term care insuranceis in clients’ best interest
Clients need long-termcare insurance
6%
10%
10%
1%
1%
2%
45%
46%
50%
48%
43%
38%
93% confident
89% confident
88% confident
Not at all confident Not too confident Somewhat confident Very confident
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors agree that long-term care insurance gives clients peace of mind and more confidence about the future.
40
Q40. How much do you agree or disagree with each of the following statements: a. The cost of long-term care scares clients; b. My clients who have long-term care insurance feel more confident about their financial future. c. My clients who have long-term care insurance feel more peace of mind. d. Even for high net worth clients who can self-insure, long-term care insurance can provide leverage. (500n)
2%
3%
4%
10%
0%
1%
<1%
1%
48%
45%
50%
52%
50%
51%
46%
37%
Clients who have long-term careinsurance feel more peace of mind
The cost of long-term care scares clients
Clients who have long-term care insurancefeel more confident about their financial future
Even for high net worth clients who can self-insure,long-term care insurance can provide leverage
96% agree
96% agree
89% agree
98% agree
Disagree strongly Disagree somewhat Agree somewhat Agree strongly
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Advisors say more than half their clients should have long-term care insurance. Far fewer currently have it.
41
Q17. What percentage of your clients do you think: a. will need long-term care sometime; c. should have long-term care insurance? Q43. About what percentage of your clients currently have long-term care insurance? [BASED ON Q17C]
Client Need for Long-Term Care Insurance
56%50%
24%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Should have long-termcare insurance
Expected to needlong-term care
Currently have long-term careinsurance
Mea
n P
erce
nta
ge o
f C
lien
ts
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Clients without insurance can spend their savings 2–3 times faster than expected if long-term care is needed.
42
Q10. What is the average annual withdrawal percentage (%) for your typical client taking retirement income from their investment portfolio? (454n) Q44. [SKIP IF DON’T KNOW OR DO NOT USE THIS STRATEGY] Previously, you indicated that your typical client taking retirement income withdraws (INSERT RESPONSE FROM Q10) per year. If a client does NOT have a long-term care solution in place and experiences a long-term care event, what do you estimate that the new average annual withdrawal percentage from their portfolio will be? (424n)
5%
13%
0%
5%
10%
15%
20%
Typical client Client experiencingcare event without insurance
Mean Annual Withdrawal Rate from Portfolio
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Three out of five advisors say that families are often devastated by the cost of long-term care.
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Q23c. How much do you agree or disagree with each of the following statements: I often see families that are devastated by the costs of long-term care ? (500n)
“I often see families that are devastated by the costs of long-term care”
8%
32%
44%
16%
Agree strongly
Agree somewhat
Disagree somewhat
Disagree strongly
60%agree
40%disagree
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
APPENDIX
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Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Demographics of Consumer Sample
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(1,012n) (weighted)
AGE
Millennials (After 1980) 32%
Gen X (1965–1980) 27%
Boomers (1946–1964) 29%
Silent (1928–1945) 12%
GENDER
Male 48%
Female 51%
Transgender <1%
Do not identify as any of the above <1%
SEXUAL ORIENTATION
Heterosexual 94%
Bisexual 3%
Gay 2%
Lesbian 1%
MARITAL STATUS
Married 54%
Never married 28%
Widowed 5%
Divorced 11%
Separated 1%
RACE/ETHNICITY
White/Caucasian 65%
Hispanic 15%
Black/African American 12%
Asian or Pacific Islander 6%
Native American or Alaskan Native 1%
Mixed racial background 2%
Another racial or ethnic category <1%
REGION
Northeast 18%
Midwest 21%
South 37%
West 23%
CHILDREN (including adult children)
Yes 61%
No 39%
EMPLOYMENT
Employed 62%
Not employed 6%
Retired 25%
Student 2%
Stay-at-home spouse or partner 4%
HOUSING
Own 68%
Rent 27%
Neither 5%
HOUSEHOLD INCOME
Less than $25,000 14%
$25,000 to $49,999 22%
$50,000 to $74,999 19%
$75,000 to $99,999 14%
$100,000 to $149,999 17%
$150,000 to $199,999 7%
$200,000 or more 7%
INVESTABLE ASSETS
Less than $25,000 24%
$25,000 to less than $50,000 17%
$50,000 to less than $100,000 15%
$100,000 to less than $250,000 14%
$250,000 to less than $500,000 11%
$500,000 to less than $1 million 10%
$1 million to less than $2 million 5%
$2 million or more 4%
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
Profile of Advisor Sample
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(500n)
BUSINESS MIX
Investment-focused 59%
Balanced 28%
Insurance-focused 13%
COMPENSATION MODEL
Asset management fees 50%
Commissions (insurance & brokerage) 45%
Planning fees 5%
NUMBER OF CLIENTS
<100 23%
100–250 36%
251–500 27%
501–750 9%
751–1,000 3%
More than 1,000 3%
AUM
Less than $1M 1%
$1M to <$5M 5%
$5M to <$25M 18%
$25M to <$50M 21%
$50M to <$100M 21%
$100M to <$250M 20%
$250M to <$500M 8%
$500M to <$1b 3%
$1b or more 2%
PRACTICE STYLE
Sole practitioner with staff 39%
Team-based practice (3+ members) 34%
Sole practitioner with no staff 27%
CHANNEL
Independent BD 45%
Wirehouse 13%
Regional BD 12%
Insurance BD 8%
Bank 6%
Insurance Carrier 6%
MGA/BGA 1%
RIA (vol.) 8%
Other 1%
GENDER
Male 81%
Female 19%
AGE
25–34 7%
35–44 19%
45–54 26%
55–64 32%
65–74 14%
75+ 2%
Lincoln Financial Group Research Conducted by Versta Research LCN-1996835-011718
LincolnFinancial.com
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About Lincoln Financial GroupLincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $253 billion in assets under management as of December 31, 2017. Lincoln Financial Group is a committed corporate citizen and was named one of the Forbes Best Employers for 2017, is a member of the Dow Jones Sustainability Index North America, and received a perfect score of 100 percent on the 2018 Corporate Equality Index. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.
About Versta ResearchVersta Research is a full-service market research firm, headquartered in Chicago, IL, specializing in customized strategic market research and public opinion polling. Learn more at: www.VerstaResearch.com.
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