{"id":11875,"date":"2021-11-17T09:54:07","date_gmt":"2021-11-17T15:54:07","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=11875"},"modified":"2021-11-17T09:54:08","modified_gmt":"2021-11-17T15:54:08","slug":"the-true-cost-of-caregiving-in-retirement","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/the-true-cost-of-caregiving-in-retirement","title":{"rendered":"The True Cost of Caregiving in Retirement"},"content":{"rendered":"\n

November is National Caregivers Appreciation Month. Throughout the month, we recognize the incredible work they do each and every day.<\/strong> It’s no secret that in-home care can be expensive, and to save costs, many Americans are turning to caring for loved ones themselves. However, staying at home isn\u2019t always the affordable option. Here’s what you need to know.<\/strong><\/p>\n\n\n\n

Caregiving never stops and it\u2019s crucial when a person reaches an older age that is in need of assistance. According to insurance company Genworth’s 2020 survey<\/a> on the cost of long-term care, the national average bill for a home health aide is $4,576 a month which has many desperate family members becoming caregivers themselves. <\/p>\n\n\n\n

Older Americans determined to stay in their own homes are likely to need help at some point \u2014 for a few hours a day or 24\/7 \u2014 with household chores, nursing services and personal care. And with the 65+ population projected to grow from 56 million in 2020 to 73 million in 2030, the need for home health care will only increase.<\/p>\n\n\n\n

Many are also hesitant to move a loved one to a residential care facility for many reasons. Some include the concern about the quality of care they might receive, or the expenses associated with long-term care. Here\u2019s a look at four costs of caregiving that should be considered before committing to becoming the full-time caregiver for a loved one.<\/p>\n\n\n\n

Caregiving Costs<\/h4>\n\n\n\n

In 2021, caregivers spent approximately 78% of their income on out-of-pocket expenses<\/a> for caregiving purposes. COVID-19 had a significant role in making caregiving more difficult and spending more money at home while being in lock down. <\/p>\n\n\n\n

One-fifth <\/a>of caregiver spending went towards direct payments for healthcare providers, hospitals, therapists, medical equipment and devices, in-home care, and adult day care. This is especially difficult for someone who has reduced their hours in order to take care of their loved ones, or begins to work part time. <\/p>\n\n\n\n

Lost Wages <\/h4>\n\n\n\n

Today’s caregivers are more likely to be employed than in the past. Approximately half of all caregivers to older adults were employed either part- or full-time. Of those caregivers who worked, 69% were employed at least 35 hours weekly.<\/a> Caregivers spend an average of 24.4 hours per week providing care, and nearly 1 in 4 <\/a>spends 41 hours or more per week providing care. <\/p>\n\n\n\n

It\u2019s not surprising that caregivers often have to take time off, either paid or unpaid, while some have to reduce their work hours. Researchers, advocates, and observers have raised concerns that the demands of caregiving negatively impact their ability to stay in the workforce. This jeopardizes their income, job security, personal retirement savings, Social Security, retirement benefits, career opportunities, and overall long-term financial well-being. <\/p>\n\n\n\n

Loss of Savings and Retirement Funds<\/h4>\n\n\n\n

Family caregiving is rewarding, but most people are unaware of the impact that care has on your life, not just financially but emotionally, socially, and physically. Caregivers have to cut back on personal spending in order to meet caregiving expenses. Approximately one-third of caregivers <\/a>say they\u2019ve also had to dip into their savings in order to cover caregiving-associated out-of-pocket costs.<\/p>\n\n\n\n

One of the reasons why caregiving is so expensive is due to them spending more time providing care than they anticipated. The average duration of a caregiver\u2019s role is four years, with only 30% of caregivers providing care for less than a year. Nearly 25 percent<\/a> of caregivers provide care for more than five years and 15 percent provide care for 10 or more years.<\/p>\n\n\n\n

It’s important to not lose sight of a retirement account while caregiving. When people are faced with having to cut their hours and compromise work, they forfeit their pay and benefits. This has them miss out on 401(k) matching contributions as well as reduced savings and investments. Fortunately, there are plenty of great resources available to help you plan for retirement. <\/p>\n\n\n\n