The increase in long-term care costs is creating new challenges for financial advisors and their clients, as uncertainty over equities, a soft housing market, and escalating healthcare costs have stunted the growth of many retirement portfolios, a new report by Genworth Financial says.

According to the study, the medium annual cost of care in a private nursing home has gone up 3.4 per cent in the past year to hit $77,745 per year - surpassing the $49,777 median annual household income for Americans. The comparable annual cost for an assisted living facility also rose 2.4 per cent in 2010, to $39,135.

"Advisors have spent their careers talking to clients about wealth accumulation. The risk of an unexpected long-term care event is a common concern for many families, and can have a significant impact on the family's financial future," said Colleen Goldhammer, senior vice president for long-term care distribution at Genworth Financial.

"Financial advisors have a great opportunity to educate and plan with each and every client to address this very real risk," she added.

The Cost of Care survey covers around 15,500 long-term care providers from 437 separate regions across the US.