As
life expectancy continues to rise and medical costs increase, many adult
children who take on the responsibility of caring for their aging parents are
finding themselves faced with quite a dilemma. Because many simply don’t have
the financial means for professional care, they’re faced with administering a
considerable portion, if not all, of the care themselves.
Here
are some interesting statistics and pieces of information that may help you in
preparing for you, or your loved ones, end of life care.
Out
of Pocket Costs
Caring.com
performed a study to get some concrete data on what family caregivers are
spending to provide care for their aging parents. Here are some statistics that demonstrate
just how much it costs:
- Nearly half of
family caregivers spend more than $5,000 annually
- 16% are spending
as much as $9,999
- 11% are spending
as much as $19,999
- 5% are spending
as much as $49,999
The
costs associated with caregiving add up over time and often put adult children
in a difficult position. While they’re spending time and money caring for their
parents, it often means they’re unable to put money into their own retirement
funds.
Loss
of Earnings and Benefits
Aside
from the out of pocket costs, many caregivers have to take time off from work
to administer care. Whether it’s driving their parents to doctor appointments,
assisting with feeding or helping with bathing and hygiene, being a sole
caregiver can be very time consuming. As a result, many people find themselves
forced to take unpaid leave, reduce their hours or leave their jobs altogether
to ensure their parents receive proper care.
In
turn, this can lead to a dramatic loss of earnings and benefits, which not only
affects long-term savings, but day-to-day living as well. Depending on whether
an adult child has to take unpaid time off from work or potentially leave their
job entirely, the cost in lost wages can be very damaging. Combine lost wages
with other costs such as medicine, doctor’s appointments, and hospital stays
and the challenge can seem insurmountable.
Employment
Struggles
In
addition to out of pocket costs and reduction of earnings, many people
experience a negative backlash with employment as well. For example, employers
may grow tired of employees who constantly require time off or show up late
because they had to care for their parents. Not only can this create tension in
the workplace, it sometimes leads to termination, and positions are replaced by
employees who don’t have these obligations.
Even
though care for an ailing family member is protected under the federal Family
and Medical Leave Act, many employers will still terminate employment. The
challenge may also arise that an adult child with a high-paying job who has a
family of their own to support must leave their job in order to keep up with
the demands of caring for loved ones, which is damaging to someone attempting
to build a career.
The
bottom line is that people living longer into their golden years is a
double-edged sword. On one side, it’s great for those aging parents and
grandparents to have more time with their families. However, on the other side,
many outlive their savings, and their adult children are faced with a difficult
situation where they suffer financially and emotionally during the process.
Planning
ahead for end of life care becomes increasingly important in our aging society.
Talking with your family about how to prepare for future costs and caregiving
can help all avoid some of the stress of growing older.
