The Cost Of Caregiving

The Cost Of Caregiving

According to a new Pew Research Center survey released in June 2013, 39 percent of U.S. adults are caring for an adult or child with significant health issues. That is up from 30 percent of U.S. adults in 2010. With most demographic groups having a nearly four in 10 chance of caring for a loved one – especially adults ages 30 to 64 who are traditionally still in the workplace – the need to plan for this possibility is great.

The costs associated with being a caregiver averages $19 an hour, according to a MetLife Mature Market Institute survey, which is why many family members take on the responsibility themselves instead of hiring a caregiver for their loved one. But becoming a caregiver, either part-time or full-time, can dramatically impact your finances. Even if the person you are caring for has sufficient income, becoming a caregiver could require you to reduce your work hours or quit working entirely. If the loved one requiring care does not have adequate income, you may need to help by covering expenses or taking that person into your home. If you were to find yourself caring for a spouse who was unexpectedly forced to stop working due to injury or illness, you may potentially have an entire household to care for without any income at all. Social Security, Medicare and Supplemental Security Income may provide some help, but qualifying can be difficult and complicated.

Many people mistakenly assume that Medicare or Medicaid will pay for nursing home care. Unless your family member is indigent, he or she won’t qualify for Medicaid. Medicare, which covers retirees over age 65, covers only the highest level of nursing home care – skilled care, provided by trained medical personnel around the clock. And even then, the payments are limited. Long-term care insurance can provide coverage for nursing home and home health needs, but it must be in place before the insured needs those services. Social Security does provide income to permanently disabled individuals, but those payments rarely come close to replacing the wages or salary that person earned before becoming disabled.

Financial issues related to caring for a loved one can be complicated. You may have time to plan as a family member ages or a disease progresses, or you may not if an accident suddenly renders a loved one unable to work or live independently. Call a financial adviser today to discuss what you can do now to be financially prepared should you or a loved one need care.  

FINANCIAL FACTS

I’m Bigger Than You – Outstanding student loans were $994 billion as of June 30, 2013. Outstanding credit card debt was $854 billion as of June 30, 2013 (source: Federal Reserve, BTN Research). 

Large Stake In The U.S. – China and Japan each own more than $1 trillion of U.S. treasury debt.  No other country in the world owns more than $250 billion of U.S. treasury debt (source: Treasury Department, BTN Research). 

Paying On Time – Only 2.41 percent of credit card accounts were at least 30 days delinquent as of March 31, 2013,  (approximately one in every 41 accounts), the lowest level nationwide since 1990 or 23 years ago (source: American Bankers Association, BTN Research).