Cecily O'Connor
RedwoodAge.com
It's not uncommon for caregivers to go the extra mile, but that added TLC often comes at the expense of their own pocketbook.
Half of those caring for a loved one over 50 are spending, on average, more than 10 percent of their annual income on caregiving expenses, sacrificing their own long-term financial plans, according to a study by Evercare, a health care coordination program, and the National Alliance for Caregiving.
The groups also noted that that caregiving costs are spriraling higher, hurting many boomers who are providing food, transportation and medical support to elderly parents.
Family caregivers, who have annual median income of $43,026, spend an average $5,531 a year on caregiving, or $400 more than the average American household spends each year on health care and entertainment combined, according to the Bureau of Labor Statistics. At lower income levels, the annual average costs remained about $5,500, making the financial burden proportionately heavier.
"The study points to a Catch-22 for these caregivers," said Gail Hunt, NAC president. "By spending today, they risk being unable to meet their own needs tomorrow."
Spending Patterns
The median household income among the 1,000 caregivers who participated in
study was $43,026, which is well below the $59,894 median income of US
households reported by the Census Bureau.
Caring for ailing family members invites a wide array of expenses. The most common caregivers encounter are: household goods, food and meals (42 percent); travel and transportation costs (40 percent); medical co-pays and pharmaceuticals (31 percent); medical equipment and supplies (22 percent); and clothing (21 percent).
One in three caregivers have used some of their savings to cover the cost of caregiving, while at least one-quarter said they had cut back on their own health-care spending. However, the most significant sacrifice for caregivers is not financial: it's their own time spent caring for an older loved one.
The financial burden can depend on various situations, however. For example, long-distance caregivers had the highest average annual expenses at $8,728, followed by co-resident caregivers, $5,885, and those who cared for someone living less than an hour away, $4,570.'No Price Tag'
Aside from money, caregivers also sacrifice a great deal of their time, which
can take a significant toll on their own families and jobs. More than half
caregivers said they did not work while 37 percent had quit their job or reduced
their work hours.
In general, caregivers spend on average 35.4 hours a week caring for their loved one, with 19 percent providing care for more than three years and 32 percent caregiving for more than five years.
"Time is the most expensive commodity I provide, but it has no price tag," said one caregiver in the study.Support Systems
While the survey focused on the personal financial costs of caregiving, it also
revealed a ripple effect: an
emotional toll associated with out-of-pocket costs. That includes
heightened stress or anxiety (65 percent), difficulty sleeping (49 percent),
increased financial worries (43 percent), depression or hopelessness (37
percent), and new or worsening health problems (26 percent).
These emotional and financial tradeoffs underscore the need for more caregiver support, said John Mach, a geriatrician and CEO of Evercare.
"We need to put in place support systems and plans now to help ensure today's caregivers can be properly cared for tomorrow, and that our society and our health care system are ready to meet their needs," Mach said.Other caregiving studies have explored costs to employers or the economic impact on society. A 2004 study by NAC/AARP showed that 21 percent of US households contain at least one caregiver. That number is expected to surge as today's baby boomers age and the number of Americans over the age of 65 doubles over the next 10 to 15 years, according to the Census Bureau.
