Advisors report caregiving referrals raise client engagement

Financial advisors who connect clients to vetted caregiving providers report higher engagement and retention, according to industry participants. Denver-based bQuest built a national network of vetted service providers and opened access to the wealth management industry last year.

bQuest was founded in 2022 and developed the network to address a common advisor challenge: when clients request healthcare or caregiving recommendations, advisors often turn to internet searches or personal contacts and lack verified information about providers. Lauren Clough, bQuest’s CEO and co-founder, noted that making referrals without sufficient information can create risk for clients and for financial plans.

The platform vets service providers and supplies a curated list advisors can share with clients. Examples of providers on the platform include geriatric care managers and other caregiving professionals. Clough pointed to cases in which giving clients contact details for trusted providers generated positive word of mouth for advisors. She added that assisting clients who care for a spouse or aging parent can strengthen client relationships and support retention and intergenerational connections.

An August bQuest report included results from research and pilot programs. The report cited findings from Frank McAleer, a longevity planning consultant who built resource networks at firms including Raymond James, that client engagement rates reached 20% to 25% among advisors using such networks. The report referred to those outcomes as a ‘return on empathy.’

Advisors and planners are increasingly discussing longevity planning, which expands retirement planning to consider what money must cover during longer lives. Health care and long-term care costs are a key part of that discussion because they are often higher and less predictable than clients expect. Fidelity projected that lifetime health care costs for 65-year-olds retiring this year would be 7.5% higher than previous estimates. A recent survey found that 87% of retirees reported concern about unexpectedly high health care costs, and that by 2030 roughly one in five Americans will be age 65 or older.

Those trends point to more clients needing professional care or advice on how to pay for services when family help is not available. Clough observed that average lifespan has increased substantially over the past century while health span has not kept pace, leaving more years when health issues can generate costs. Clients without nearby family or children may rely on paid professionals, which can add expenses and complicate financial planning if advisors do not include those needs.

Advisors without a vetted network face practical risks: recommending an unsuitable provider and underestimating care needs in client plans. The latter can leave clients unprepared for the cost and logistics of caregiving and affect retirement income projections and estate decisions. bQuest presents its network as a resource for advisors who prefer not to build provider relationships themselves. The company reported that advisors who include caregiving resources in client conversations see clients raise related issues earlier and more often, creating chances to adjust plans and suggest products or services related to extended care needs.