Caregivers: Don’t Miss These Three Retirement Strategies
20 Jul 2017
The reality is this:
Women have the short end of the stick when it comes to employment, long term care, and caregiving. This makes retirement strategies more vital to their future financial stability.
However, another issue that some female caregivers face is this:
Many have left their jobs to provide the care that their loved ones need and yet they continue to pay for some of the care costs out of pocket. This puts them in a financially limited situation when it comes to their own future needs.
In situations like this, what can female caregivers do to secure retirement?
Retirement Strategies to Apply Now
In an earlier post, we discussed three retirement planning tips for family caregivers. Now, let’s further the discussion by exploring the three strategies that target the retirement struggles of women today:
Find the Most Comprehensive Care Coverage
Long term care coverage cannot be stressed enough, especially when you are a woman with looming care costs just around the corner.
It is no secret that long term care can drive a significant blow to a woman’s finances, and this may be attributed to two reasons:
Women live longer than men.
They also need more care services than their counterparts.
This means they may need more care services for a longer amount of time. However, not many have the finances to cover these costs to begin with. Although women are winning in the retirement savings game, these can easily be wiped away if we combine out of pocket costs related to caregiving and future long term care needs.
Please feel free to refer to this link to help you in understanding long term care insurance more.
Don’t Quit Your Job Yet
According to studies, caregivers are more likely to be employed than before. However, it is also important to acknowledge that one out of five retirees has had to leave the workforce earlier than planned to care for an ill loved one or spouse.
Understandably, this may be necessary for some caregivers, especially when the care demands are high. However, if it is possible, female caregivers ought to try to stay in the workforce for two reasons:
To maintain a stable source of income.
To take advantage of employer-sponsored retirement plans.
Bear in mind that women tend to spend fewer years in the workforce because of childrearing. This leads to lower chances of qualifying for employer-sponsored programs or fewer benefits from these plans.
The same goes for caregiving. However, because it typically happens later in life, women may find it more difficult to get back into the workforce after.
This is why, if it is possible, female caregivers must work to maintain their jobs. In order to achieve this, female caregivers can apply the strategy indicated below.
Discuss Options with Family Members
Keep this in mind:
Dividing caregiving duties between siblings can help the primary caregiver significantly.
However, not all siblings and family members may be on the same page when it comes to caring for an ill loved one. From the finances to the medical decisions, this situation can turn into a full-blown argument.
This is why an open discussion is necessary to come up with a solution that works best for everyone. Division of tasks, like the care services, processing of papers, and financial support, must be thoroughly planned by the family. If one person is providing the care, then another should help out with the costs.
Remember to match the care needs of the aging loved ones to the abilities of each sibling. This way, the burden does not fall on just one person.
Conquering Family Caregiving Issues as a Community
Women still play a key role in caregiving. As indicated below, they still top the number of care recipients and care providers in the family.
|Adult children caring for aging mothers||50%|
|Wives caring for their husbands||17%|
|Adult children caring for aging fathers||10%|
|Husbands caring for their wives||7%|
|Individuals caring for neighbors, other relatives, or friends||16%|
However, this should be an issue that the whole community works to solve. Caregiving has affected not just the households but the society as well.
As the youngest of the baby boomers slowly shift into retirement, the caregivers among their ranks need all the help that they can get. Let’s all contribute by sharing the information we know about long term care planning and retirement strategies. You never know who you might end up helping just by starting the conversation.