Costs of Caregiving

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More than 65 million Americans — about one out of three adults — provide care for someone who is ill, disabled, or aged.(1)  Although these caregivers are unpaid, the total value of their efforts is estimated at $450 billion annually — more than the value of paid home health care and more than the 2010 retail sales of Wal-Mart, the world’s largest retailer.(2–3)

Not surprisingly, about two-thirds of all caregivers help someone who is age 50 or older, typically a parent, a spouse, or a friend.(4) Most people volunteer out of love and a sense of duty, but the high expense of professional care is an important factor.  The average annual cost of nursing-home care exceeds $77,000.(5)

Unpaid informal caregiving, although free, could still have a significant financial impact.  Seven out of 10 working caregivers reported having job difficulties, from changing their schedules or turning down a promotion to taking unpaid leave or giving up work entirely.(6)  For caregivers who live nearby or with the person receiving care, average out-of-pocket costs range from $4,570 to $5,885 annually.  For long-distance caregivers, who often have substantial travel and lodging expenses, the average annual cost is $8,728. (7)

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Of course, the financial burden is only one aspect of the cost of caregiving.  Studies show that many caregivers also suffer physical and emotional effects, especially back problems and depression.(8)   The old expression, “Physician heal thyself,” may be appropriate. When you provide care for someone else, it’s important to take care of yourself.

As with many aspects of life, financial resources can make a significant difference. Only 3% of caregivers with six-figure incomes report suffering fair or poor health themselves, compared with one-third of those who have household incomes under $30,000.(9)

If you haven’t factored the cost of long-term care into your retirement needs, it may be wise to give it serious consideration.  If you are caring for a loved one — or receiving care — a sound financial strategy could help alleviate some of the stress. We are available to discuss your situation and help you consider your options.

1–2, 4, 6–9) Family Caregiver Alliance, 2011
3) Deloitte Global Services, 2012
5) 2012 Field Guide, National Underwriter


For more information, visit http://www.allegraandcompany.com/

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright © 2012 Emerald Connect, Inc.

Allegra & Company  •
309 South Street
New Providence, NJ
07974
Phone: 908-665-1696
Fax: 908-665-9693
www.allegraandcompany.com
Dallegra@royalaa.com  
  
  
David J. Allegra is a Registered Representative of and offers securities products & services through Royal Alliance Associates, Inc. 300 Executive Drive, Suite 125, West Orange, NJ 07052. 973-736-8400 Member FINRA/SIPC, a registered broker-dealer. CPA and tax services offered through Allegra and Company which is not affiliated with Royal Alliance Associates, Inc., or registered as a broker dealer or registered investment advisor. Traditional insurance offered by David J Allegra as an agent independent of Royal Alliance Associates, Inc.
In this regard, this communication is strictly intended for individuals residing in the states of (MA, NJ, NY, PA). No offers may be made or accepted from any resident outside the specific state(s) referenced. Advisory services offered through Royal Alliance Associates, Inc., a Registered Investment Advisor.

 



 

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