Familial Caregiving Impacts Many Clients’ Finances
One in five U.S. adults currently assists an older family member with daily tasks or housing, according to a new survey from RBC Wealth Management; in addition to causing stress and anxiety, the impact of caregiving can be significant on an individual’s financial health.
RBC Wealth Management recently collaborated with Ipsos to poll more than 2,000 Americans ages 35 and older, finding 17% of respondents regularly help an older family member with chores, cooking, cleaning or traveling to appointments.
In addition, 5% provide no-cost housing and 5% offer other financial support to older family members, RBC’s survey shows.
As the U.S. population ages, the responsibility of caring for aging relatives is falling largely to next of kin. In sum, according to the survey, one in five (19%) American adults currently assists an older family member in some capacity. What is more striking in the survey results in the sizable monetary contributions that many Americans are putting up each month to support older relatives. The survey found that among those who provide financial support to an older relative, the average monthly contribution is $403. Twenty-two percent contribute $500 to $999, and 14% contribute more than $1,000.
“As lifespans increase, and as the cost of health care reaches new heights, many adults are shouldering the responsibility of ongoing support for their family members,” explains Angie O’Leary, head of wealth planning at RBC Wealth Management U.S. “It’s important for individuals to have a financial plan in place so they can help care for their relatives, while also preparing for their own financial future.”
According to O’Leary, retirement readiness for caregivers is possible, but it’s not going to be easy to establish. In addition to the financial burden, the emotional burden of caring for aging relatives can be daunting.
“Among respondents who have a senior relative in their life, 10% say one they help care for has been diagnosed with some form of dementia, and another 9% say someone else in their family has been similarly diagnosed,” O’Leary notes.
According to the Alzheimer’s Association, 5.7 million Americans are living with Alzheimer’s disease, a figure that is expected to reach 14 million by 2050.
“As cognitive decline becomes an increasingly significant part of Americans’ lives, it is having a massive impact on families’ finances, not only due to increased medical expenses but also because those with dementia may make financial missteps and are at increased risk for becoming targets of fraud and abuse,” O’Leary warns. “Many of the survey respondents are experiencing these effects firsthand.”
Among those respondents with a senior family member, one in ten (11%) either knows or suspects that their loved one has been a victim of financial abuse. This figure rises to 30% among those with a family member they care for who has been diagnosed with dementia. According to the survey, 28% of respondents in this group have taken formal steps with a financial institution or lawyer to protect their family member’s finances in light of a diagnosis, and a similar proportion (29%) have taken some informal steps. Forty-three percent have taken no steps at all.
“Only about half of the people we surveyed say they’re familiar with the steps to take if they suspect an older relative has been a victim of abuse,” warns Jen McGarry, who heads RBC’s client risk prevention division. “Families are certainly doing their best in these situations, but the industry has a significant responsibility and role to play in protecting vulnerable populations.”
McGarry and O’Leary say advisers should work closely with clients and their families to understand how cognitive disease can put them at risk, and to put safeguards in place to preserve their dignity and their assets.
The RBC survey shows many Americans are also caring for younger family members with disabilities and other life challenges. A fifth of all survey respondents (21%) say they have adult children who they help support financially. This figure rises to 23% among the respondents who are mothers and 24% among parents between the ages of 35 and 54. Parents in higher-income households are most likely to be supporting adult children, at 25%. According to the survey, among those respondents providing financial support to adult children, the monthly contribution averages $445. For parents in high-income households, the figure is $681.
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Edmund Murphy III, has been appointed president and CEO of Great-West Life & Annuity Insurance Company (GWL&A), the U.S. subsidiary of Great-West Lifeco Inc. and the parent of Empower Retirement.
Former President and CEO Robert Reynolds will shift to a new role as chair of Great-West Lifeco U.S. LLC. Reynolds will maintain his role as president and CEO of Boston-based Putnam Investments, also a subsidiary of Great-West Lifeco US.
As president and CEO, Murphy will assume leadership of all of GWL&A, which includes Empower Retirement, Great-West Investments and the company’s individual life insurance and annuity businesses.
Murphy will remain president of Empower Retirement and will report directly to Great-West Lifeco President and CEO Paul Mahon. He brings 30 years of broad industry experience to his role. Before his 2014 appointment as president of Empower, he had served as managing director of the defined contribution investment only (DCIO) business at Putnam Investments since 2009 and served on the firm’s Operating Committee. Previously, he held executive leadership roles for 17 years at Fidelity Investments in its institutional, private equity and retail businesses. He also served as president and CEO of Veritude, LLC, as well as a board member of BostonCoach, Advisor Technology Services, Seaport Hotel, World Trade Center and several other Fidelity-owned businesses. Earlier, he spent six years at Merrill Lynch.
Murphy has written articles on retirement-related matters and has testified in Washington, D.C., before the House Ways and Means Committee, the Department of Labor (DOL), the Treasury Department and the IRS. He speaks on topics ranging from retirement issues and public policy to investment advice and lifetime income strategies.
He is a board member of the Employee Benefit Research Institute, Cristo Rey School, Boston College Wall Street Council and the New England Council. He holds a bachelor’s degree from Boston College and is a graduate of the General Manager Program at Harvard Business School.
Retirement Sales Consultant Joins TRA
The Retirement Advantage, Inc. (TRA) hired Aurelia Detwiler as regional sales consultant covering Texas, Louisiana and Mississippi, reporting to Jeff Schreiber, director of Sales for TRA. Detwiler is responsible for partnering with financial advisers and wholesalers to design and implement optimal retirement plans for privately-held businesses.
Detwiler has 20 years of financial services experience with 12 years of sales and market development practice with several financial services companies, including working as a retirement sales consultant for Empower Retirement. Prior to her role at Empower, Detwiler was a retirement education specialist at MassMutual.
“With the addition of an industry veteran like Aurelia, TRA is excited to continue broadening our reach while serving the needs of our clients through top consulting personnel. Her expertise in retirement plan sales strategy, adviser practice management, marketing and communications; will enhance the service and support we’re able to provide to our advisers in the region,” says Schreiber. “We are excited about the fresh perspective that Aurelia brings to TRA.”
“I am eager to join the TRA team,” says Detwiler. “I am passionate about providing the highest quality products and service to my clients, and I look forward to building lasting relationships with advisers and wholesalers in my territory.
Detwiler acquired her bachelor’s degree in business administration/finance from California State University, Fullerton. Detwiler has her NASD Series 6, 7, 31, 63, 66; as well as her chartered retirement plan specialist, CRPS designation.
ERISA Industry Committee Appoints Leaders
The ERISA Industry Committee (ERIC) added Aliya Robinson as the new senior vice president of Retirement and Compensation Policy and LeAnne Wilson as vice president of Strategic Partnerships.
Robinson will lead ERIC’s efforts to develop and advocate for retirement and compensation public policies priorities for ERIC member companies at the federal, state, and local levels.
For the past 12 years, Robinson served as the executive director of Retirement Policy at the U.S. Chamber of Commerce where she was responsible for developing, promoting, and publicizing the Chamber’s policy on employer-provided retirement plans, nonqualified deferred compensation (NQDC), and Social Security.
Robinson also practiced employee benefits law advising clients on issues relating to ERISA (Employee Retirement Income Security Act) and the Internal Revenue Code for retirement plans, health and welfare plans, and fringe benefit plans. Additionally, she worked on multiemployer pension plan compliance under ERISA, the Internal Revenue Code, and various areas of corporate tax, including corporate restructuring, implementation of cafeteria plans, and compliance with tax reporting obligations.
Robinson is a graduate of New York University School of Law, where she also received a Master of Laws in Taxation. She received a bachelor’s degree in economics and African studies from Yale University.
As the vice president, Strategic Partnerships for ERIC, Wilson will be responsible for developing, growing, and managing partnerships to build resources for the nation’s largest employers. She will work closely with ERIC’s vice president for Membership Development on membership matters and with ERIC’s CEO on strategic initiatives.
Wilson has led strategic development and implementation of membership programs that significantly increased dues revenue at both the National Association of Manufacturers (NAM) and the Business Roundtable (BRT). At BRT, she served as senior vice president, responsible for developing member retention, recruitment, and services. While there, Wilson also oversaw the association’s CEO quarterly meetings. She served as chief operating officer, then senior vice president of Membership at NAM.
Before her work with that association, she served as a senior consultant with Bingham Consulting Group LLC. She has also worked with then-Governor John Engler in a number of different capacities, including 12 years as director of the State of Michigan office in Washington, D.C.
Wilson holds a bachelor’s in political science from the University of Michigan.
Hooker & Holcombe Announce Promotion and Hires
Hooker & Holcombe namedSteve Lemanski, practice leader and consulting actuary, as principal of the firm, whileStephen ChykirdaandNorm Yamamotohave joined the team as consulting actuaries.
“We are excited about the expertise these individuals bring to our actuarial team. Steve is well-respected by his peers and has already proven to be a valued member of our executive team. Additionally, the depth of knowledge Stephen and Norm bring to the firm further enhances our leadership position in the Northeast,” statesRichard Sych, president and consulting actuary.
Lemanskiis an enrolled actuary and holds the FSA, FCA and MAAA designations. He joined the firm in 2016 as consulting actuary. In 2018, he was promoted to practice leader of the Actuarial Services Group where he oversees a team of skilled actuarial professionals. Lemanski graduated summa cum laude fromDrew Universitywith a bachelor’s degree in applied mathematics and economics. Prior to joining the firm, he was with Milliman where he served as principal and consulting actuary for a number of municipalities throughout the Northeast.
Chykirdajoined the firm in 2018 as a consulting actuary. He is an enrolled actuary, holds both the ASA and MAAA designations, and earned a bachelor’s in electrical engineering from the University ofRhode Island. He was most recently with MassMutual where he served as a consulting actuary for municipalities and Fortune 500 companies.
Yamamotois an enrolled actuary who joined the firm in 2018 and holds ASA, FCA and MAAA designations. His diverse client base has included aerospace, banking, manufacturing, higher education, and a number of for-profit and not-for-profit organizations. Prior to joining the firm, Yamamoto was with Buck Consultants where he served as principal and consulting actuary. He graduated from theUniversity of California at Los Angeleswith a bachelor’s in applied mathematics/systems engineering and in psychology.
LCG Associates Promotes Former Investment Analysts
LCG Associates, Inc. promoted Matthew Hawkins, CAIA and W. Scott Sheely, CFA, CAIA to consultant. Both employees are based out of the Atlanta office.
“Matt and Scott’s promotions exemplify the high caliber of talent, collegiality, and commitment within LCG’s team,” says Edward F. Johnson, president and chief executive officer.
Hawkins joined LCG in 2015 and has four years of industry experience. His responsibilities include investment strategy development, manager due diligence, special research projects, and providing investment advice to clients. Hawkins also serves as a quantitative analytics specialist assisting with LCG’s proprietary analytical systems. He began his career at LCG as an investment analyst.
Hawkins has passed all three levels of the chartered financial analyst (CFA) Program and will be eligible for the CFA charter upon completion of the required work experience. Hawkins is a chartered alternative investment analyst (CAIA) charterholder. He holds a master’s degree in finance from Vanderbilt University and graduated cum laude from the University of Georgia (UGA) with a business administration degree in finance.
Sheely joined LCG in 2015 and has six years of industry experience. His responsibilities include investment strategy development, manager due diligence, special research projects, and providing investment advice to clients. He began his career at LCG as an investment analyst.
Prior to joining LCG, Sheely was an investment analyst at Segal Rogerscasey (now Segal Marco Advisors) responsible for conducting manager searches, preparing performance reports, analyzing information for clients, and other investment‐related projects.
Sheely is a CFA charterholder and is a member of the CFA Society of Atlanta. He is also a Chartered Alternative Investment Analyst (CAIA) charterholder. Sheely graduated cum laude with a bachelor’s of science in business administration in both finance and management and a minor in political science from The University of South Carolina (USC).
Willis Towers Watson Appoints Rewards Practice Leader
Willis Towers Watson appointed Catherine Hartmann as Rewards practice leader for North America. In this role, Hartmann will have responsibility for the growth of the geography’s broad-based Rewards practice. She is based out of the company’s Irvine, California, office.
“We are delighted to appoint Catherine to this important leadership role,” says Carole Hathaway, global practice leader, Rewards, Willis Towers Watson. “Catherine has a tremendous 25-year track record of consulting, business development and thought leadership on rewards issues, and her expertise and experience make her the ideal candidate for this position. We’re confident that under Catherine’s leadership we’ll continue to grow our rewards business and deliver outstanding value for our clients.”
Hartmann joined the company’s Rewards practice in 2000. She left in 2005 before returning to Willis Towers Watson in 2013.Hartmann holds a bachelor’s degree in sociology with a minor in women’s studies from Villanova University.
The Standard Brings In Director of Stable Value Sales
The Standardhired Joseph Simmons, CFA, as stable value sales director. This new position was created to support The Standard’sgrowing product base of stable value funds.
Simmons has more than 25 years of experience in the financial services industry, previously holding positions as a director of stable value and director of investment consulting.
He has a master’s of business administration degree and a bachelor’s degree in finance from Northeastern University. Simmons also holds the chartered financial analyst designation and FINRA Series 7, 63 and 65 licenses.
“We are excited to grow our stable value sales team with an accomplished and knowledgeable professional like Joe,” says Chris Conklin, vice president of Individual Annuities and Asset Management Group Sales at The Standard. “With this larger team, we can further serve the investment needs of our advisor partners and their clients.”
