Monday, June 3, 2019

Caregivers and the Impact on Their Financial Security

The GAO recently released a study examining the financial implications to caregivers.  Retirement Security: Some Parental and Spousal Caregivers Face Financial Risks explains

[a]bout 10% of Americans per year cared for an elderly parent or spouse from 2011 through 2017. These family caregivers may risk their long-term financial security if they have to work less or pay for caregiving expenses such as travel or medicine.

More than half of people who cared for parents or spouses said they went to work late, left early, or took time off for care

Spousal caregivers at or near retirement age had less in retirement assets or Social Security income than non-caregivers

Experts and studies identified ways to potentially improve caregivers' retirement security, such as increasing their Social Security benefits

The full 71 page report is available here as a pdf, while the highlights are available here.  Here is a synopsis of the highlights

Some caregivers experienced adverse effects on their jobs and had less in retirement assets and income.

  • According to data from a 2015 caregiving-specific study, an estimated 68 percent of working parental and spousal caregivers experienced job impacts, such as going to work late, leaving early, or taking time off during the day to provide care. Spousal caregivers were more likely to experience job impacts than parental caregivers (81 percent compared to 65 percent, respectively).
  • According to 2002 to 2014 data from the Health and Retirement Study, spousal caregivers ages 59 to 66 had lower levels of retirement assets and less income than married non-caregivers of the same ages. Specifically, spousal caregivers had an estimated 50 percent less in individual retirement account (IRA) assets, 39 percent less in non-IRA assets, and 11 percent less in Social Security income. However, caregiving may not be the cause of these results as there are challenges to isolating the effect of caregiving from other factors that could affect retirement assets and income.

 

https://lawprofessors.typepad.com/elder_law/2019/06/caregivers-and-the-impact-on-their-financial-security.html

Consumer Information, Current Affairs, Health Care/Long Term Care, Other, Retirement, Statistics | Permalink

Comments

Post a comment