New survey highlights caregivers’ retirement conundrum

investmentnews.com:

A new survey from Nationwide sheds much-needed light on a growing predicament, as many Americans find themselves sandwiched between their need to retire in comfort and their responsibility to care for aging and ailing relatives.

The Nationwide Retirement Institute’s annual Long-Term Care survey reveals that many Americans are grappling with the high costs associated with providing long-term care for themselves and their loved ones, impacting their ability to retire comfortably.

The survey, which polled 1,334 US adults aged 28 and older with household incomes of $75,000 or higher, highlighted the financial sacrifices people are making to balance caregiving responsibilities with long-term financial stability.

Steep costs breed financial dilemmas

Among those surveyed, 43 percent fear that caregiving expenses will prevent them from ever retiring. Fifty-six percent said they’re willing to take a loan from their retirement account to be a caregiver for a relative, while 42 percent said they’ll likely have to use up money they’d planned for their children if they ever had to become a caregiver.

Many caregivers face substantial out-of-pocket expenses, averaging $338 per month on items such as co-pays, prescription medications, and transportation. Compounding the financial strain, 15 percent of respondents had to transition to part-time work or take lower-paying, more flexible jobs to accommodate caregiving duties.

Despite these challenges, only 17 percent of adults have discussed long-term care planning with a financial professional. Among those who have not had these discussions, 30 percent reported that their financial advisors had not brought up the topic.

“Long-term care planning is complicated and emotional, and has a huge