Caregiving
Caring for a parent can cost a working caregiver about $120,500 over a lifetime, AARP finds
The estimate counts lost pay, smaller retirement savings and lower Social Security checks, and it climbs to about $446,500 for caregivers who miss more than two and a half years of full-time work.
Key facts
- Typical working caregiver loses about $120,500.
- More than 2.5 years out of work: about $446,500.
- Caregivers born 1981 to 1985 face $2.3 trillion in losses.
What happened
AARP released a report on November 4 called "The Hidden Cost of Caregiving," built with the Urban Institute's long-range economic model. It estimates that a typical working family caregiver loses about $120,500 over a lifetime. That includes about $105,100 in lost pay, $7,300 in workplace retirement income and $8,100 in Social Security benefits.
The losses grow with time out of work. Caregivers who miss more than two and a half years of full-time work lose about $446,500, and people who provide care for 10 years or more lose about $175,000. Looking only at Americans born from 1981 to 1985, AARP projects that caregivers in that group will lose $2.3 trillion in total, including $2 trillion in pay, $140 billion in workplace retirement income and $150 billion in Social Security. AARP leaders said the findings support policies such as paid family leave and Social Security credits for caregiving years.
What it means for families
Cutting hours or leaving a job to care for a parent can follow you into retirement through smaller savings and a smaller Social Security check.
Before changing your work schedule, it can help to price out paid help, respite and adult day programs that might let you keep working.
New York offers caregiver support, respite and help finding paid care through each county's Office for the Aging and the NY Connects line, 1-800-342-9871.
What to do this week
- Ask your employer about family leave, flexible hours or caregiver benefits before you cut hours.
- Check your Social Security earnings record at ssa.gov to see how time off could affect your benefit.
- Call your local Office for the Aging about respite or adult day care.
Sources
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