Millions of Americans will be financially burdened by caregiving responsibilities

investmentnews.com:

Americans are living longer but the downside is that many will require assistance from family members, who may in turn face a financial burden.

A new report from the TIAA Institute and the University of Pennsylvania School of Nursing reveals that one in five adults now provide care to loved ones with uncompensated expenses running to an average of $7,000.

Housing, healthcare, and transportation are among the expenses family caregivers incur and almost half of respondents said they have suffered financially and many take on debt, pay bills late, or tap their own savings accounts or retirement funds to cover the costs.

“Although the emotional and physical toll on family caregivers is well recognized, the financial impact of these roles has received less attention,” said Surya Kolluri, head of the TIAA Institute. “The impact on lifetime earnings, savings, Social Security benefits and retirement readiness can be severe. Especially today, as people are living longer, caregivers should plan for these costs at various life stages.”

The research found that 1 in 4 family caregivers has less than $1,000 in savings and investments compared to 1 in 7 non-caregivers.

Around one quarter of the family caregivers identified in the survey are in their twenties or thirties, a time when they typically have lower income levels and should be able to make gains in their careers.

Many are also raising children while also caring for older relatives.

“As younger generations increasingly take on caregiving roles, they face different financial pressures and trade-offs,” said Mary Naylor, director of the Penn Nursing’s New Courtland Center for Transitions and Health. “The financial choices made at younger ages have ripples for years to come, as