The Cost of Caregiving
Young people – Will you be responsible to take care of a parent or other loved one someday? If so, this is for you.
Older folks – Have you set the course, so your family will not need to leave the workplace or spend their own family resources taking care of you? You also need to pay attention.
When was the last time your family sat down to discuss what the future may hold?
My advice: Prepare for the worst and hope and pray for the best.
In an article in the Minneapolis Star Tribune, Carla Fried (rate.com) wrote, “Millions of Women – yes, it’s mostly women – end up in midlife weighing a temporary work exit to care for ailing parents. The economic cost can be devasting.”
This of course can apply to men also, as they could be the primary caregiver juggling a job, family, and ageing parent. Or it could apply to one’s spouse, partner, or to a single person, affecting the household finances. No one is immune. Us Baby Boomers are getting old fast!
We need to plan ahead for caregiving. Here are a few steps you can take before a crisis (some are mentioned in Ms. Freid’s article):
- Ensure your loved ones have the proper legal paperwork completed, and review it periodically. An elder-care attorney costs money, however the legal advice could can save money and heartache in the future.
- Try not to take your own social security too early. There is a higher guaranteed payout if you wait until your full retirement age, and there is an even greater payout at age 70.
- Think about your parent’s future living situation. Do you have the space to transform a dwelling unit for your loved one as they age? It will simplify your life to walk across the yard to make meals or sort the medications for your loved one, vs. driving across town.
If you are in the midst of decision-making about a loved one, consider:
- If one sibling has to quit work to care for a parent, the other siblings could pay the caregiver, or even contribute to an IRA to replace their lost retirement benefits.
- Reduce your hours at work, vs. quitting all together.
- Plan to pay for a caregiver for your loved one. That is not cheap but may be a viable alternative.
- Explore available benefits,e.g. Social Security Disabilty (if the loved one is under 65), Veteran’s benefits, Medicare Supplemental Plans, Medicaid or community resources.
The bottom line is communication; understand the financial and legal situation, and plan ahead. Yes, these conversations may be difficult now, but there are alot worse alternatives.
As they say, “Denial is not a river in Egypt.”