Caregiving
More than 32 million Americans help pay for an older relative's care, study finds
A new Edward Jones, Age Wave and Harris Poll study finds more than 32 million adults are financial caregivers for someone 65 or older, most spending their own savings, and only a third planned for the role ahead of time.
Key facts
- McKnight's Senior Living reported on October 15 on a new study from Edward Jones, Age Wave and The Harris Poll.
- More than 32 million adults are financial caregivers for someone 65 or older, and more than eight in 10 are willing to sacrifice their own financial security to support the person in their care.
- The study found 84% of financial caregivers spend an average of $8,700 a year out of pocket, often from their own retirement or savings.
What happened
McKnight's Senior Living reported on October 15 on a new study from Edward Jones, Age Wave and The Harris Poll. More than 32 million adults are financial caregivers for someone 65 or older, and more than eight in 10 are willing to sacrifice their own financial security to support the person in their care.
The study found 84% of financial caregivers spend an average of $8,700 a year out of pocket, often from their own retirement or savings. Only 33% had discussed or planned the caregiving role ahead of time, and 22% felt prepared. Of those employed, 62% said they use caregiving-related employer benefits when offered.
What it means for families
Helping pay for a parent's care can quietly drain your own retirement. Talking about money early, as a family, makes it easier to share the load and avoid surprises.
For example: three siblings could agree on who pays for what, write it down, and review it every six months, instead of one person quietly covering everything.
The study also found 31% of respondents said caregiving motivated them to talk with a financial adviser about their own future long-term care needs, and 31% said it convinced them to save more.
What this means in New York: county Offices for the Aging and NY Connects can tell families about programs that may reduce out-of-pocket costs.
Quick answers
How much do financial caregivers spend out of pocket?
The study found 84% of financial caregivers spend an average of $8,700 a year out of pocket, often from their own retirement or savings. Only 33% had discussed or planned the caregiving role ahead of time, and 22% felt prepared. Of those employed, 62% said they use caregiving-related employer benefits when offered.
What to do this week
- Have one family conversation about who is paying for what and write it down.
- Ask your employer what caregiving benefits you have, such as flexible hours or an employee assistance program.
- Before using retirement savings, talk with a financial adviser or tax preparer about the impact.
Sources
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