Making the decision to care for a loved one means a lot of things. Among them may be sacrificing your own financial health.
CareGiving Kos is a group for those who are now (or have been) in the role of being a care-giver for a loved one. Intended to be a support group and information resource for all care-providers and the many challenges they face. If you would like to join, just send us a message or leave a comment indicating that. All are welcome to follow us, participate, and share.
How much of a hit? Well, it's going to depend on your exact situation. But a MetLife Study indicates the following for adult children over 50 caring for aging parents:
For women the total individual amount of lost wages due to leaving the labor force early and/or reduced hours of work because of caregiving responsibilities equals $142,693. The estimated impact of caregiving on lost Social Security benefits is $131,351. A very conservative estimated impact on pensions is approximately $50,000. Thus, in total, the cost impact of caregiving on the individual female caregiver in terms of lost wages and Social Security benefits equals $324,044.
And for men?
For men the total individual amount of lost wages due to leaving the labor force early and/or reduced hours of work because of caregiving responsibilities equals $89,107. The estimated impact of caregiving on lost Social Security benefits is $144,609. Adding in a conservative estimate of the impact on pensions at $50,000, the total impact equals $283,716 for men, or $303,880 for the average male or female caregiver 50+ who cares for a parent.
An AARP study recently put the cost of family care-giving to be over $450 Billion annually - that's what it would cost to have someone else care for people who are now cared for by family members.
Like I said, how it impacts you will depend entirely on your own situation. You may be able to get some money via state or federal programs meant to aid care-providers. You may be able to tap into long-term care insurance for an "alternate care plan". You may find that you can at least get some respite care or help from different agencies on aging in your area. Or you may be in a situation where you have to "spend down" family resources for any help at all, which can leave a care-provider almost destitute when care-giving is over. Combine that with the exhaustion which comes with care-giving, and being removed from the labor market for a period of time (during which your job skills may become outdated), and one thing is clear: the decision to care for a loved one means a substantial financial sacrifice.
And given budgetary constraints at all levels of government, and the desire by some to just eliminate programs which help the poor and elderly, things are not going to get better anytime soon.
Share your story, if you are comfortable doing so.