Caregiving’s Impact

I had mentioned previously that I was looking at the Genworth annual cost of care survey.  As a corollary, Genworth has information about who provides care, referred to as The Expanding Circle of Care.  The website mentions the caregivers, with “[t]he Beyond Dollars Research reveal[ing] 5 key insights on the true impact of long term care.” The Expanding Circle of Care Beyond Dollars 2015 explains the 5 “key insights” in the executive summary. The circle of care is explained as:

The financial, physical and emotional demands of providing care for a loved one can sometimes be more than a single caregiver can handle. The good news is that more family members are helping provide care. The opportunity to plan for the likelihood of needing long term care before a crisis situation occurs remains large. Our research has shown that a “Circle of Care” often forms around the care recipient, involving people who provide different levels and types of support.

The second insight is that although caregivers are positive about their role of caregivers, they note that “[c]aregiving can negatively impact health & well-being”, including familial relationships and interactions with friends. The third insight is instructive regarding the future: “Caregivers’ savings and retirement funds are at risk”

Caregivers who help provide financial assistance for the care of their loved ones estimate that they pay, on average, a total of about $10,000 in out-of-pocket expenses.

That’s up from an average of $7,285 in 2010. Those financial expenses can include everything from household expenses, personal items, or transportation services, to payment of informal caregivers or long term care facilities.

Most caregivers did not anticipate or plan for this expenditure. In many cases, they are cutting back on personal spending and savings. More significantly, some may be jeopardizing their own financial futures.

It follows logically then that the fourth insight  builds from the third one: “Caregivers’ careers and livelihoods are impacted by providing care.”  The caregivers who work reported a definite impact on their jobs, which in turn impacts the caregiver’s bottom line. “Absences, reduced hours and chronic tardiness can translate into a significant reduction in a caregiver’s paycheck.”

The executive summary is available here.