Making Ends Meet Making Ends Meet for Caregivingfor CaregivingToday and TomorrowToday and Tomorrow

Who is providing care?Who is providing care?

44 million U.S. adults44 million U.S. adults 61% women61% women Women-spend 17 years caring for Women-spend 17 years caring for

children and 18 years assisting elderly children and 18 years assisting elderly parentsparents

Businesses lose $11-29 billion/year to Businesses lose $11-29 billion/year to employee caregivingemployee caregiving

Caregiving: Caregiving: Financial BasicsFinancial Basics

Family caregivers Family caregivers provide 80% of the provide 80% of the dollar cost of all dollar cost of all home care serviceshome care services

Only 20% comes Only 20% comes from Medicare and from Medicare and MedicaidMedicaid

Source: Jean Austin, ESP National Conference, September 2007

0

50

100

150

200

250

300

Annually

PaidHomeCare

NursingHome

FamilyCaregiving

Estimated CaregiversEstimated Caregivers by State by State

Source: Jean Austin, ESP National Conference, September 2007

Caregiving StatisticsCaregiving Statistics

Women caregivers are 2.5 times more Women caregivers are 2.5 times more likely to live in poverty than non-likely to live in poverty than non-caregiverscaregivers

Women are more likely to take a part Women are more likely to take a part time job to provide caretime job to provide care

Women average 13 non-wage-earning Women average 13 non-wage-earning years due to caregiving responsibilitiesyears due to caregiving responsibilities

Source: Jean Austin, ESP National Conference, September 2007

Family Family Costs of CaregivingCosts of Caregiving

Direct costs-todayDirect costs-today More than $300 per month More than $300 per month Money spent by caregiver on person takes away Money spent by caregiver on person takes away

from ability to save for retirementfrom ability to save for retirement Compromised work schedulesCompromised work schedules Demands on timeDemands on time Breaks in work historyBreaks in work history Emotional, psychological & physical consequencesEmotional, psychological & physical consequences Health insuranceHealth insurance

Family Family Costs of CaregivingCosts of Caregiving

Hidden costs-today and tomorrowHidden costs-today and tomorrow Decrease in leisure timeDecrease in leisure time Stress and healthStress and health Emotional strainEmotional strain FatigueFatigue Fear & anxietyFear & anxiety Sadness & griefSadness & grief Anger & guiltAnger & guilt Higher rates of accidentsHigher rates of accidents Lower productivityLower productivity Work-family conflictWork-family conflict

Family Family Costs of CaregivingCosts of Caregiving

Opportunity costs impacting tomorrowOpportunity costs impacting tomorrow$25,494 in Social Security benefits in Social Security benefits

$67,202 in pension benefits in pension benefits

$566,474 in earned wages in earned wages

$659,139$659,139 net loss net loss

Social Social Costs of CaregivingCosts of Caregiving

Social costs occur in the absence of supportive Social costs occur in the absence of supportive policies and programspolicies and programs

NAC & AARP survey –20% of employees left NAC & AARP survey –20% of employees left workforceworkforce

Reduced tax base to pay for social servicesReduced tax base to pay for social services Company productivity is reduced-$11.4 to Company productivity is reduced-$11.4 to

$36.5 billion per year$36.5 billion per year Cost of replacing employees who quit, Cost of replacing employees who quit,

increased absenteeism, workday interruptions increased absenteeism, workday interruptions and so on.and so on.

Policy Recommendations Policy Recommendations to Help Caregiversto Help Caregivers

Family Medical Leave (FMLA) Family Medical Leave (FMLA) modify so fewer hours are required to qualify modify so fewer hours are required to qualify

for leavefor leave continuation of health benefitscontinuation of health benefits continue employer retirement contributionscontinue employer retirement contributions State-assisted wage replacement for State-assisted wage replacement for

caregivingcaregiving

Policy Recommendations Policy Recommendations to Help Caregiversto Help Caregivers

Flexible work arrangementsFlexible work arrangements Social Security contributions continue Social Security contributions continue

while on caregiving leavewhile on caregiving leave Other ideas are under consideration:Other ideas are under consideration:

reducing the Social Security computation to reducing the Social Security computation to include fewer yearsinclude fewer years

Making Child and Dependent Care tax credit Making Child and Dependent Care tax credit refundable and requiring fewer hours of care refundable and requiring fewer hours of care in the home to qualifyin the home to qualify

Family Caregiving Family Caregiving Decisions ScenarioDecisions Scenario

What are the immediate concerns?What are the immediate concerns? What are their options?What are their options? What are the consequences and costs What are the consequences and costs

for the decisions?for the decisions? Are there any costs/consequences for Are there any costs/consequences for

the decisions when Maria reaches the decisions when Maria reaches retirement age?retirement age?

Reflection on the Case Reflection on the Case StudyStudy

What did you learn by analyzing the case What did you learn by analyzing the case study?study?

What new ideas or tips did you glean What new ideas or tips did you glean from the members of your small group?from the members of your small group?

What information did you use from the What information did you use from the presentation to make case study presentation to make case study suggestions?suggestions?

Managing today’s Managing today’s caregiving costscaregiving costs

Strategies for todayStrategies for today Seek advice of financial planner Seek advice of financial planner Assess your and your loved one’s financial Assess your and your loved one’s financial

situation situation Seek support servicesSeek support services Explore employer flexibility optionsExplore employer flexibility options

Sources of Retirement Sources of Retirement IncomeIncome

Social SecuritySocial Security

Pension or Pension or Employer Employer Retirement PlanRetirement Plan

Personal Savings Personal Savings and Investmentsand Investments

Important FactorsImportant Factors At what age do I want to At what age do I want to

retire?retire?

How many years will I spend in How many years will I spend in retirement?retirement?

What will be my income from What will be my income from my employers’ retirement and my employers’ retirement and Social Security?Social Security?

How much will I have in How much will I have in personal investments?personal investments?

What will be the return on my What will be the return on my investments?investments?

What is your vision of What is your vision of retirement?retirement?

Resources For Making Resources For Making Retirement EstimatesRetirement Estimates

Ballpark EstimateBallpark Estimate (American (American Savings Education Council or Savings Education Council or ASEC)ASEC)

http://www.asec.org

Social Security benefit Social Security benefit estimates and Web site: estimates and Web site:

http://www.ssa.govhttp://www.ssa.gov

Planning for your futurePlanning for your future

Resources to prepare for tomorrowResources to prepare for tomorrow Put your retirement vision down on paperPut your retirement vision down on paper Seek advice of financial planner Seek advice of financial planner Support servicesSupport services Employer flexibility optionsEmployer flexibility options Family Medical LeaveFamily Medical Leave Reimbursement for caregivingReimbursement for caregiving Tax deductions and creditsTax deductions and credits Pre-retirement financial planning educationPre-retirement financial planning education Life planning seminars (employer-sponsored)Life planning seminars (employer-sponsored)

ResourcesResources WISER Women’s Institute for a Secure RetirementWISER Women’s Institute for a Secure Retirement

www.wiserwomen.orgwww.wiserwomen.orgEldercare LocatorEldercare Locator

www.eldercare.govwww.eldercare.govNational Alliance for CaregivingNational Alliance for Caregiving

www.caregiving.orgwww.caregiving.orgMet Life Mature Market InstituteMet Life Mature Market Institute

www.maturemarketinstitute.comwww.maturemarketinstitute.comFamily Caregiver AllianceFamily Caregiver Alliance www.caregiver.orgwww.caregiver.orgNational Family Caregiver AssociationNational Family Caregiver Association www.nfcacares.orgwww.nfcacares.orgThe Caregiver Resource CenterThe Caregiver Resource Center www.caregiverresourcecenter.comwww.caregiverresourcecenter.com

Resources Resources (Cont.)(Cont.)

Financial Planning AssociationFinancial Planning Association

http://www.fpanet.orghttp://www.fpanet.org

Certified Financial Planner Board of Certified Financial Planner Board of StandardsStandards

http://www.cfp.nethttp://www.cfp.net

Plans for ImplementationPlans for Implementation

What information from this presentation What information from this presentation will you use or share with someone you will you use or share with someone you know who is a caregiver?know who is a caregiver?

How will you use information from this How will you use information from this presentation?presentation?

What policy changes would you suggest?What policy changes would you suggest?

ReferencesReferencesAustin, J. Austin, J. Caregiving is in Your Future.Caregiving is in Your Future. ESP National Conference, September 2007, Charleston, ESP National Conference, September 2007, Charleston,

SCSCEnglish, T. (2007). English, T. (2007). Unpaid caregiving extracts hidden costs from labor force, economy. Retrieved Unpaid caregiving extracts hidden costs from labor force, economy. Retrieved

from seniorjournal.com on May 22, 2008.from seniorjournal.com on May 22, 2008.Family Caregiver Alliance. Family Caregiver Alliance. Women and Caregiving: Facts and Figures. Women and Caregiving: Facts and Figures. Retrieved from Retrieved from

www.caregiver.org on May 22, 2008.www.caregiver.org on May 22, 2008.Financial Steps for Caregivers: What You Need to Know about Money and Retirement. Financial Steps for Caregivers: What You Need to Know about Money and Retirement. WISER WISER

2008.2008.Hounsell, C. (March 2007) Hounsell, C. (March 2007) Family Caregiving: State of the Art, Future Trends.Family Caregiving: State of the Art, Future Trends. Women’s Institute Women’s Institute

for a Secure Retirement.for a Secure Retirement.Orel, N., Ford, R. & Brock, C. (2004) Orel, N., Ford, R. & Brock, C. (2004) Women’s Financial Planning for Retirement: The impact of Women’s Financial Planning for Retirement: The impact of

disruptive life events.disruptive life events. Journal of Women & Aging. Journal of Women & Aging.Resources for Caregivers.Resources for Caregivers. (2007). MetLife Mature Market Institute and National Alliance for (2007). MetLife Mature Market Institute and National Alliance for

Caregiving in cooperation with the National Association of Area Agencies on Aging.Caregiving in cooperation with the National Association of Area Agencies on Aging.Stoller, E. (1983) Stoller, E. (1983) Parental Caregiving by Adult ChildrenParental Caregiving by Adult Children. Journal of Marriage and the Family.. Journal of Marriage and the Family.Swanberg, J., Kanatzar, T. Memdiondo, M. & McCoskey, M. (2006). Swanberg, J., Kanatzar, T. Memdiondo, M. & McCoskey, M. (2006). Caring for Our Elders: A Caring for Our Elders: A

Contemporary Conundrum for Working People.Contemporary Conundrum for Working People. Families in Society. Families in Society.The Cost of Caregiving. Retrieved from www.caregiversresourcecenter.com on May 22, 2008.The Cost of Caregiving. Retrieved from www.caregiversresourcecenter.com on May 22, 2008.White House Conference on Aging ( December, 2005). White House Conference on Aging ( December, 2005). Care for the Caregiver: A Place to Start.Care for the Caregiver: A Place to Start.Young, L. & Newman, S. (2003). Young, L. & Newman, S. (2003). Caregiving and Retirement Planning: What Happens to Family Caregiving and Retirement Planning: What Happens to Family

Caregivers Who Leave the Work ForceCaregivers Who Leave the Work Force. Family Caregiver Alliance.. Family Caregiver Alliance.

Developed by:

Ann A. Berry, Ph.D., University of TennesseeCarolyn L. Bird, Ph.D., North Carolina State University