Healthcare planning services needed as costs continue to rise
Financial advisors—are you prepared to help your clients plan for their healthcare needs in retirement? According to Fidelity Benefits Consulting, a 65-year-old couple retiring this year will spend $275,000 on healthcare in retirement, representing opportunity for financial advisors and wealth managers.
Healthcare must be integrated into comprehensive wealth management, but this can present a challenge to financial advisors and their clients. There are few consumer resources available to provide help and advice on Medicare, long-term care, medical bills, and other areas of healthcare spending concern.
This is why some financial advisors are building healthcare advisory services into their practices. This allows them to better serve existing clients nearing retirement age or with significant healthcare needs, and also serves as a marketing tool for prospects.
If you are thinking about building healthcare services into your financial advisory firm, you have a few options. One is to hire a healthcare advisor to work within your practice. Another is to develop relationships with local insurance brokers to whom you can refer clients, similarly to any attorney referrals you may make. One important note here, however, is to make sure any potential referral partners have individual advising services. Many insurance brokers work exclusively with group plans.
Other options include partnering with a third-party healthcare advising service, or building healthcare advising into your own suite of services. Regardless of which option you pursue, here are a few things you should think about.