Financial Planning Tips for Working Caregivers

Financial Planning Tips for Working Caregivers ; Research Shows Working American Caregivers Lose Lifetime Average of $304,000 in Wages, Pensions and Social Security Benefits -- Free Resource Helps Americans Navigate Work and Caregiving Responsibilities

The MetLife Mature Market Institute has released a publication, "Planning Tips: Financial Considerations for Family Caregivers," to help the many Americans who lose a considerable amount of money when they take time from their jobs to care for their aging parents and also spend a good deal of their own funds to do so. A recent study, "The MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents," found that the 10 million employed caregivers in the U.S. lose an estimated $3 trillion in wages, pensions and social security benefits over a lifetime if they leave the workforce prematurely; the average losses are $304,000 per person. That does not include additional out-of-pocket expenses related to caregiving, such as travel costs, contributing to the parents' household and purchasing items needed by the care recipient.

Here is a synopsis of the tips:
-- Think twice about leaving your job to provide care, as it will impact your lifetime wealth and future employment prospects -- In addition to losing a paycheck, you could also be missing out on years of service required to become vested in a defined benefits pension plan, to receive matching 401(k) funds or to build Social Security benefits.

Check with your employer to determine what benefits are offered, and how you would replace them, should you curtail your employment
Your employer may be able to provide workplace accommodations--such as flex-time or family and medical leave (FMLA)--so you can stay in the workplace while caring for your relative.

Take stock of what you have and your expenses for caregiving
Consider your current costs for travel, home care and any other items that you cover. Add up all your current out-of-pocket costs for caregiving and create a budget for these expenses.

Look into public benefits
Community services may be available for low cost or no cost and can offset out-of-pocket expenses. The Web site, www.BenefitsCheckup.org , offers free, confidential service that can help older adults find programs to help pay for some of the costs associated with prescription drugs, health care, utilities and other essentials.

Become knowledgeable about Medicare and Medicaid
Medicare is not all-inclusive and you will want to be aware of costs for premiums and deductibles. Some enrolled in Medicare may also qualify for Medicaid which covers a range of health and long-term care services.

Calculate what it would cost to keep your loved one at home
There are many resources to enable an older person to age in place with additional services such as meals-on-wheels, adult day services and home modification.

Consider enlisting a geriatric care manager
Geriatric care managers are usually social workers or nurses who assist with evaluation, referral and monitoring a plan of care for older persons.

Be aware of possible elder financial abuse
Older individuals, especially those with physical or cognitive impairments can be vulnerable to exploitation which may deplete one's savings.

Discuss your loved one's legal, financial, and medical wishes
Investigate Power of Attorney, Durable Power of Attorney and a Living Will.

Create a budget for your own future retirement expenses
Consider what portion of your income you'll need to maintain your current lifestyle after retirement; experts typically place it at about 80% of current income.

The Planning Tips publication also contains an annotated list of resources for caregivers to find help, including: BenefitsCheckUp.org, Administration on Aging (AOA), the Internal Revenue Service, the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), Women’s Institute for a Secure Retirement (WISER) and the Insurance Information Institute.

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