Financial Toll of Caregiving

The Wall Street Journal recently noted the high and rising economic toll of caring for an elderly parent on the family member that cares for them.  Data from the US Health and Retirement Study, conducted by researchers at the University of Michigan, show the percentage of adult children over age 50 taking care of their parents tripled from 3% of men and 9% of women in 1994 to 17% of men and 28% of women in 2008.

The financial toll on these care providers averages $303,880 per person in lost wages, pensions and Social Security benefits.  Men fare somewhat better financially than women with average losses of $283,716 compared with $324,044 among women.  Among women, the average losses included $142,693 in wages, $131,351 in Social Security benefits, and $50,000 in lost pension benefits or matching contributions.  These adult caregivers are leaving the work force early, during their highest earning years.  Often, there is little time to return to the workforce or to catch up on savings and accruing benefits.

The study authors suggest employers accommodate the needs of caregivers by referring them to stress-management and caregiving resources, considering paid family leave for caregivers, and potentially tapping workers compensation funds to finance employee caregiving responsibilities.  Although some companies recognize the importance of support services for employees managing aging parents and provide help, many companies do not.  Sometimes, the services and help offered are inadequate for retaining employees or making it possible for an employee to continue working.

Our mission at Dignity Care Consulting is to minimize the impact of caregiving on family members who assume responsibility for the care of their aging parent or relative.  We offer a no-cost evaluation and can suggest a plan to help care for your parents while you continue to work.  Let Dignity Care Consulting help you maintain your financial base of support while enjoying your parents as they age.