More U.S. adults are balancing caregiving and long-term financial wellbeing. As a result, many are having to make financial sacrifices.
That’s according to Nationwide Retirement Institute’s latest Long-Term Care survey, which fielded responses from 1,334 adults ages 28 or older, with household incomes of $75,000 or higher. The survey finds half of adults worry that caregiving expenses will keep them retiring one day. Nationwide reports that on average, caregivers spend $338 per month on specific caregiving expenses, including co-pays, prescription drugs, gas money, transportation, and more.
Caregiving costs could have significant impacts on one’s retirement and long-term savings. Nationwide’s survey shows that 56% would be willing to take a loan from their retirement account to be a caregiver for someone in their family and 42% would be willing to use savings intended for their children to pay caregiving costs.
The impact is especially felt by women, many who end up taking on the role of a caregiver in their mid-careers. A recent study by WIPN found that in a survey of 163 respondents, seven in 10 women who are caregivers and work report having a say in their work schedules or for remote work options. Three in 10 women said caregiving had a negative impact on their career opportunities, and just 4% said it positively influenced their career.
Despite their hurdles, the survey reports that only 17% of adults have discussed long-term care planning with a financial professional. Of those who receive financial guidance, 30% say their advisor has not brought up future caregiving as a planning topic.
“Long-term care planning is complicated and emotional, and has a huge impact on financial wellbeing,” said Holly Snyder, president of Nationwide’s Life Insurance business, in a statement. “Our data shows that Americans would benefit from taking a more proactive approach to financial planning to ensure they are equipped to meet the needs of their loved ones and themselves as they age. The most important step financial professionals can take is to proactively communicate with their clients, ensure they understand the costs, and develop a long-term care plan that accounts for their own long-term care needs as well as those of their loved ones.”
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