November is National Family Caregivers Month,
celebrating the more than 53 million people in the U.S. who currently provide
unpaid care to a relative or friend.
November 22, 2021 By Mary Beth Franklin
This week, when many
Americans gather for what may be their first Thanksgiving during the pandemic —
or what some are calling “VAXgiving” — it will be a great opportunity for long
overdue hugs and kisses, and an in-person assessments of how loved ones are doing.
In proclaiming November
as National Family Caregivers Month, President Biden said: “Every day, millions
of Americans provide essential care and medical assistance to their loved ones.
This has been especially trying throughout the Covid-19 pandemic, during which
Americans of all ages have made substantial sacrifices to keep family members
safe and healthy.”
At my own family gathering
this year, we will be thankful for those who are present and for those who are
only present in our hearts. During the past year, we have discovered how life
can change in instant and how caregiving roles can be thrust upon us.
Just ask my niece, mother
of a 22-year-old college senior who was the sole survivor of a car crash
earlier this year that killed three of his friends. Brandon was lucky to
survive, but the star baseball player lost his foot in the process.
His parents went from empty
nesters to full-time caregivers, asked to make critical medical decisions,
sweating through numerous surgeries and scheduling grueling physical therapy
sessions while they negotiated with insurance companies and lawyers. Thank goodness
for their empathetic and competent financial adviser, who continues to guide
them through the nightmare.
My older brother Jay
expected to take his place at the head of the table this year in his usual role
of family patriarch following shoulder replacement surgery two weeks ago.
Although the orthopedic surgery was deemed a success, his aging brain has yet
to clear the anesthesia, resulting in cognitive impairment and an uncertain
future. Suddenly, his wife of more than 60 years has become a caregiver.
Today, more than 53 million
people in the U.S. provide unpaid care to a relative or friend, according to
the National Alliance for Caregiving and AARP. More than 60% of those
caregivers are women.
In addition, the rapidly
expanding elderly population has put a new focus on caregiving — both in terms
of hands-on care and financial management. More than 49 million Americans are
65 or older, and by 2034, America will reach a new milestone: older adults will
total 77 million, outnumbering children under age 18 for the first time in
history.
As financial advisers face
the dual pressures of fee compression and competition from automated trading
platforms, many are looking for ways to differentiate their practices and
demonstrate their value to new and existing clients. Including financial
caregiving support may be part of the answer.
Caregiving can have serious
financial consequences, especially for adults nearing retirement. More than 60%
of caregivers report making adjustments to work schedules to accommodate
caregiving responsibilities, and nearly half of caregivers experience one financial
impact, such as using personal savings, leaving bills unpaid or having to
borrow money.
A 2011 study from the
MetLife Mature Market Institute showed that women over 50 who leave the
workforce to care for a parent lose, on average, $324,004 in wages, Social
Security benefits and private pensions over their lifetimes as a result of
their caregiving responsibilities.
The Women’s Institute for a
Secure Retirement (WISER) has issued a new free financial
guide for caregivers that advisers may want to share
with their clients. The guide looks at the financial challenges facing today’s
family caregivers and provides information, tips and resources to help
caregivers keep their own finances on track while caring for someone else.
Included in the guide is a budget worksheet that factors in many of the
out-of-pocket costs of care.
Another free resource,
caregiver.com, offers a caregiver’s
checklist that includes knowing where to find essential
financial documents such as insurance policies, pension records, bank accounts
and critical passwords for all digital accounts.
(Questions about new Social
Security rules? Find the answers in my 2021 ebook at
MaximizingSocialSecurityBenefits.com)
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