making ends meet for caregiving today and tomorrow
TRANSCRIPT
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.