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Balancing Work and Caregiving |
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With more than 15 million Americans taking on caregiving responsibilities while working, it is fast becoming a way of life for today's workforce. Exhaustion, stress and financial burdens are also increasing with this labor of love. Can you see yourself among these statistics?
- According to the American Society on Aging, nearly one out of every five U.S. households – or 18.5 million households – provide care to a relative or friend aged 50 or older.
- In addition, 40 percent of caregivers are also raising children, and 64 percent are working full- or part-time.
- According to the National Alliance for Caregiving, caregivers spend an average of 4.5 years providing care, and spend about 12 hours each week providing it.
The Costs of CaregivingCaregiving often results in financial consequences for the caregiver. Some of the consequences are obvious:
- A decision to work part-time
- A decision to decline a promotion requiring longer hours
- A decision to pass up a training opportunity requiring travel
But there are more subtle consequences as well. These include:
- Lost opportunities for compounded returns on 401(k) matching contributions
- A reduction in savings and investments
- An inability to finance home improvements that could increase the value of your home
A study by the National Center of Women & Aging found that, on average, caregivers lose $659,130 over a lifetime in reduced salary and retirement benefits. How Can You Balance Work and Caregiving?
- Contact your company's human resources department and ask if they have resources on caregiving or an employee assistance program (EAP).
- Utilize flex-time if it is offered at your company.
- Set aside telephone time at work, such as your lunch hour, to make necessary calls inquiring or lining up service and doctors' appointments.
- Ask for help from friends and family.
- Take time for yourself.
- Meet with other caregivers through support groups. Some organizations have support groups for individuals with specific illnesses like heart failure or Alzheimer's disease.
- Learn about the Family and Medical Leave Act (FMLA) which protects jobs for employees who may need to take a temporary leave for family or medical conditions.
- Focus on what your employer needs. Think about how you can work together during this hard time.
- Re-examine your priorities at home and at work. See if there are other alternatives to doing some of the jobs you used to do.
- Outline a plan for the services you may need, now and in the future, such as home-delivered meals, home health care, hospice or assisted living facilities. Make a list of places for resource information such as your local Area Agency on Aging or contact the United Way Information and Referral Service by dialing 2-1-1 on your phone.
Financial Steps for Caregivers
- Develop a household budget to identify living expenses and live in a way that protects you from financial crisis.
- If you are thinking of leaving your job or reducing your hours to part time, learn what will happen to your benefits as a result. If you leave or reduce your hours without understanding the rules, you might lose out on retirement income. Check with your HR department before making any final decisions.
- Talk to your family about the financial impact of being a caregiver. Talk to your siblings and other family members about the various costs involved in you providing care to a family member. Consider asking family members to pay you as an independent contractor for the care you are providing. Consider setting up your own IRA to replace retirement savings lost from your employer.
- Consider long term care insurance for yourself so you have more choices when you face health care decisions in your own retirement.
Additional InformationGo to wiserwomen.org, and check out "Financial Steps for Caregivers". Other helpful web resources:
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