According to a new report from AARP, family members caring for loved ones provide an estimated $600 billion in unpaid services each year. They often sacrifice their time, money, and, in many cases, their well-being.
As Congress debates a bill to provide a tax credit for family caregivers, determining how much that time is worth is proving tough.
Amy Goyer understands the challenge, both personally and professionally. Caring for her aging parents turned her life upside down. Her mother suffered a stroke in her late sixties, and her father was diagnosed with Alzheimer’s disease. She is also a caregiving expert with more than three decades of experience who works with AARP.
While she doesn’t regret having cared for her parents, it was financially devastating for her. She paid for home renovations in order to keep her parents safer at home, and she lost income. Sadly, she also had to file for bankruptcy after her father’s death.
Goyer’s situation is becoming more common throughout America. According to a Harvard Business School survey, 73% of American workers give some form of care at home.
The financial burden on families can be tremendous. According to AARP’s 2021 survey, family caregivers spend an average of $7,242 of their own money each year. That does not include the time they spend taking care of things like medication, finances, and meal preparation.
Shon Lowe has been caring for her mother, Terrie Montgomery, since her Alzheimer’s diagnosis ten years ago.
Salary.com and Otsuka America Pharmaceuticals Inc. announced a new tool that provides a more accurate view of the financial cost of caregiving. The cost is frequently hidden. However, the financial cost of caregiving is felt by families worldwide.
Lowe tried Family Caregiver Calculator, which determines the financial impact of caregiving for family caregivers depending on geography, time spent, and type of job performed. When she input the number of hours she and her siblings spent caring for their mother, the total came to $270,103 annually. “It’s unbelievable,” Lowe said. “Something should be done about that.”
While some states have programs that provide pay to family caregivers, Goyer said that these options are limited. If more resources are not provided, future generations will face an increasing financial burden according to Goyer. “We’re putting our caregivers’ financial security in jeopardy,” she told CBS News. “They’re not going to have the money to pay for someone to care for them.”
A recent report to Congress by the Recognize, Assist, Include, Support, and Engage (RAISE) Family Caregiving Council proposed several potential solutions to alleviate this burden, including a federal tax credit for family caregivers, immigration reform to increase the caregiver workforce, and state grant program expansion.
These solutions provide hope to families coping with caregiving, but they require congressional action. If implemented, the Credit for Caring Act, which was presented in Congress this year, would grant qualifying caregivers a federal tax credit of up to $5,000.
AARP is advocating for the passage of this law, emphasizing that it will provide much-needed relief to caregivers who are frequently financially strained while caring for their loved ones.
Millions of vulnerable Americans depend on family members to provide care every day. Family caregivers need support in order to continue providing vital care to their loved ones.
Sources:
Fuller, Joseph B., et al. “Hidden Workers: The Case for Caregivers.” Harvard Business School, Harvard University , 3 Oct. 2024, http://www.hbs.edu/managing-the-future-of-work/Pages/default.aspx.
Quraishi, Ash-har, et al. “Families Sacrifice Time and Money Caring for Loved Ones. A New Caregiver Calculator Reveals the High Cost.” CBS News, CBS Interactive, 14 Oct. 2024, http://www.cbsnews.com/amp/news/caregiver-calculator-cost-for-families/.