Why Caring for Elderly Parents May Affect Your Retirement
When you see the price tag for assisted living, caring for your elderly parent yourself can start looking more appealing. But that choice may be more expensive than some people think, reports NPR.
While MetLife says assisted living costs an average of $42,000 a year, family caregiving also takes a financial toll—and not just on today’s bills.
The MetLife report said that for the typical woman, the lost wages due to dropping out of the labor force because of adult caregiving responsibilities averages nearly $143,000. That figure reflects the wages lost while not working — typically for about five years — as well as lower wages after returning to the workforce with rusty skills. When foregone pension and Social Security benefits are counted, the out-of-pocket losses roughly double.
“Family caregivers are themselves aging and yet are providing care at a time when they also need to plan and save for their own retirement,” MetLife said. The people who drop out of the workforce “can jeopardize their future financial security,” the study concluded.
In February, we noted that home modifications and in-home care costs (if you hire some help) also add up. Of course, being a family caregiver also has its rewards.
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Leigh Ann Otte is a freelance writer who specializes in health and aging issues. She covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.
Reblogged this on Country By Design's Blog and commented:
Care giving can take a toll on your family in more ways than one! It’s never to early to start planning.
Yep, I don’t know exactly when it’s going to happen, but these costs are going to catch up with future generations. It’s a really tough situation when you think about it. The current generation of elderly people didn’t “have it easy” (especially during childhood / early adulthood), but they were able to buy homes, not accumulate too much debt, and make good money even without college degrees. Now, the baby boomers are dealing with tons of debt and caring for their parents on top of it. AND now they’re retiring! I’m wondering if something’s going to happen soon to make things better, or if the current college grads are going to be left footing an enormous bill.
I am also supporting the comment of Pittsburgh senior care.
In this scenario, it is becoming a risky task to move our life in a moderate level. So what about the future? Can’t even imagine about it.