Most Americans over the age of 65 will need long-term care. But long-term care is a double-edged sword that particularly affects women. As caregivers, women are more stressed than male caregivers, less likely to be employed than male caregivers, and spend as much as 50% more time in caregiving than men.
And for those needing care, women live an average of five years longer than men, which explains why there are more women in need of LTC services. Women are three times more likely to live to age 90, which explains why 80% of women are widows by age 90 (compared to only 40% of men).
Since there has been increased focus over the last decade on helping women specifically with their financial goals, Shawn Britt, technical director for the advanced consulting group at Nationwide Retirement Institute, examined in a blog post from Nationwide what has changed with the state of long-term care, and what changes have occurred that could affect women planning for retirement.
For one thing, men’s involvement in caregiving is changing. Family Caregiver Alliance reported 12 years ago that more than 75% of caregivers were women, and women continue to be most non-paid caregivers, primarily to spouses and parents. Now, men are more involved with caregiving and now comprise 39% of caregivers.
However, men are more likely to help with tasks such as paying bills and taking their loved ones to the doctor, while female caregivers are still more likely to provide the more difficult tasks such as personal care. Men are more likely to be a caregiver if younger. Men between ages 18 to 49 comprise 42% of adult caregivers, while men between ages 50 to 64 make up only 35% of caregivers.
It was estimated 12 years ago that the cost of balancing work with caregiving could cost a woman an average of $565,000 over her lifetime in lost wages, Social Security, and pension benefits. Today, that figure is around $324,000, while lower, is still a substantial financial loss.
A few explanations for the reduction in the loss of income are that men have become more involved in caregiving responsibilities and sharing in the loss of income. Employers are more aware of their employee’s caregiving responsibilities and may show some flexibility. Workplace benefits for caregivers have increased, paid time off is more flexible, the increased availability of paid family leave, and there are more flexible work hours.
However, despite these improvements, some employees are reluctant to disclose caregiver status to their supervisor unless it results in caregiver benefits.
Since caregiving is a major challenge for many Americans more studies have come out designed to understand the effects of and changes in caregiving. There’s also more support available now to help caregivers handle their challenges than there was 12 years ago, including online help that is far more advanced than it was in the past.
Still, some online opportunities available to caregivers are being missed. Caregivers are underutilizing the internet to connect with other caregivers. And until the pandemic hit, only a few caregivers were consulting with doctors virtually (though online consultations with doctors are becoming the norm since the pandemic).
There are more choices for care services than there were 12 years ago. More assisted living facilities, continuing care retirement communities (CCRC), and even alternative care services exist now, providing choices for more customized care.
The expansion of cash indemnity policies, where the insurance company places no restrictions on how LTC benefits are spent, has also expanded the opportunity to use LTC benefits for alternative care services and has also made family care more palatable.
While the last 12 years have seen many positive changes in the LTC industry that have been helpful to women, it’s still a double-edged sword women should plan for — both as a caregiver and as the cared-for.
“As America continues to age, the challenges of long-term care will become more critical than ever before,” wrote Britt. “By helping clients now in planning for a potential LTC event and how to help pay for it, financial professionals can help ease the physical, financial, and emotional stress faced by caregivers and care recipients — both more likely to be women.”
Nationwide a variety of actively managed ETFs for advisors that cater to a range of investment exposures and strategies for those seeking retirement income options for their clients as part of their bigger retirement planning pictures.
For more news, information, and strategy, visit the Retirement Income Channel.
This article was prepared as part of Nationwide’s paid sponsorship of ETF Trends.
ETFs, hedge funds, equities, bonds, and other asset classes have different risk profiles, which should be considered when investing. All investments contain risk and may lose value. Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund’s return may not match or achieve a high degree of correlation with the return of the underlying index.
Call 1-800-617-0004 to request a summary prospectus and/or a prospectus. You may also download the prospectus at the link above or by visiting etf.nationwide.com. These prospectuses outline investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing.
The results shown represent past performance; past performance does not guarantee future results. Current performance may be lower or higher than the past performance shown, which does not guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. To obtain the most recent month-end performance, go to etf.nationwide.com or call 800-617-0004.
Click this link for the funds’ Standardized performance and 30-day SEC yield.
KEY RISKS: The Nationwide Nasdaq-100® Risk-Managed Income ETF, Nationwide S&P 500® Risk-Managed Income ETF, Nationwide Dow Jones® Risk-Managed Income ETF, and Nationwide Russell 2000® Risk-Managed Income ETF (collectively, the “Risk-Managed Income ETFs”) are subject to the risks of investing in equity securities, including tracking stock (a class of common stock that “tracks” the performance of a unit or division within a larger company). A tracking stock’s value may decline even if the larger company’s stock increases in value. The Risk-Managed Income ETFs are subject to the risks of investing in foreign securities (currency fluctuations, political risks, differences in accounting and limited availability of information, all of which are magnified in emerging markets).
The Risk-Managed Income ETFs may invest in more-aggressive investments such as derivatives (which create investment leverage and illiquidity and are highly volatile). The Risk-Managed Income ETFs employ a collared options strategy (using call and put options is speculative and can lead to losses because of adverse movements in the price or value of the reference asset). The success of the Risk-Managed Income ETFs’ investment strategy may depend on the effectiveness of the subadviser’s quantitative tools for screening securities and on data provided by third parties. The Risk-Managed Income ETFs expect to invest a portion of their assets to replicate the holdings of an index. Correlation between Fund performance and index performance may be affected by Fund expenses and because the Fund may not be invested fully in the securities of the index or may hold securities not included in the index.
The Risk-Managed Income ETFs frequently may buy and sell portfolio securities and other assets to rebalance its exposure to various market sectors. Higher portfolio turnover may result in higher levels of transaction costs paid by the Risk-Managed Income ETFs and greater tax liabilities for shareholders. The Risk-Managed Income ETFs may concentrate on specific sectors or industries, subjecting them to greater volatility than that of other ETFs. The Risk-Managed Income ETFs may hold large positions in a small number of securities, and an increase or decrease in the value of such securities may have a disproportionate impact on the Funds’ value and total return. Although the Risk-Managed Income ETFs intend to invest in a variety of securities and instruments, the Risk-Managed Income ETFs will be considered non-diversified.
Additional risks include: Collared options strategy risk, correlation risk, derivatives risk, foreign investment risk, and industry concentration risk.
The Fund expects to invest a portion of its assets to replicate the holdings of an index. Correlation between Fund performance and index performance may be affected by Fund expenses and because the Fund may not be invested fully in the securities of the index or may hold securities not included in the index. The Fund frequently may buy and sell portfolio securities and other assets to rebalance its exposure to various market sectors. Higher portfolio turnover may result in higher levels of transaction costs paid by the Fund and greater tax liabilities for shareholders. The Fund may concentrate on specific sectors or industries, subjecting it to greater volatility than that of other ETFs. The Fund may hold large positions in a small number of securities, and an increase or decrease in the value of such securities may have a disproportionate impact on the Fund’s value and total return. Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered nondiversified. Additional Fund risk includes: Collared options strategy risk, correlation risk, derivatives risk, foreign investment risk, and industry concentration risk.
Nationwide Fund Advisors (NFA) is the registered investment advisor to Nationwide ETFs, which are distributed by Quasar Distributors LLC. NFA is not affiliated with any distributor, subadviser, or index provider contracted by NFA for the Nationwide ETFs.
Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.