1. Making Ends Meet for Caregiving Today and Tomorrow

2. Who is providing care?  44 million U.S. adults  61% women  Women-spend 17 years caring for children and 18 years assisting elderly parents  Businesses lose $11-29 billion/year to employee caregiving

3. Caregiving: Financial Basics  Family caregivers provide 80% of the dollar cost of all home care services  Only 20% comes from Medicare and Medicaid Source: Jean Austin, ESP National Conference, September 2007

4. Estimated Caregivers by State Source: Jean Austin, ESP National Conference, September 2007

5. Caregiving Statistics  Women caregivers are 2.5 times more likely to live in poverty than non- caregivers  Women are more likely to take a part time job to provide care  Women average 13 non-wage-earning years due to caregiving responsibilities Source: Jean Austin, ESP National Conference, September 2007

6. Family Costs of Caregiving  Direct costs-today  More than $300 per month  Money spent by caregiver on person takes away from ability to save for retirement  Compromised work schedules  Demands on time  Breaks in work history  Emotional, psychological & physical consequences  Health insurance

7. Family Costs of Caregiving  Hidden costs-today and tomorrow  Decrease in leisure time  Stress and health  Emotional strain  Fatigue  Fear & anxiety  Sadness & grief  Anger & guilt  Higher rates of accidents  Lower productivity  Work-family conflict

8. Family Costs of Caregiving Opportunity costs impacting tomorrow in Social Security benefits $25,494 in Social Security benefits in pension benefits $67,202 in pension benefits in earned wages $566,474 in earned wages $659,139 net loss

9. Social Costs of Caregiving  Social costs occur in the absence of supportive policies and programs  NAC & AARP survey –20% of employees left workforce  Reduced tax base to pay for social services  Company productivity is reduced-$11.4 to $36.5 billion per year  Cost of replacing employees who quit, increased absenteeism, workday interruptions and so on.

10. Policy Recommendations to Help Caregivers  Family Medical Leave (FMLA)  modify so fewer hours are required to qualify for leave  continuation of health benefits  continue employer retirement contributions  State-assisted wage replacement for caregiving

11. Policy Recommendations to Help Caregivers  Flexible work arrangements  Social Security contributions continue while on caregiving leave  Other ideas are under consideration:  reducing the Social Security computation to include fewer years  Making Child and Dependent Care tax credit refundable and requiring fewer hours of care in the home to qualify

12. Family Caregiving Decisions Scenario  What are the immediate concerns?  What are their options?  What are the consequences and costs for the decisions?  Are there any costs/consequences for the decisions when Maria reaches retirement age?

13. Reflection on the Case Study  What did you learn by analyzing the case study?  What new ideas or tips did you glean from the members of your small group?  What information did you use from the presentation to make case study suggestions?

14. Managing today’s caregiving costs  Strategies for today  Seek advice of financial planner  Assess your and your loved one’s financial situation  Seek support services  Explore employer flexibility options

15. Sources of Retirement Income  Social Security  Pension or Employer Retirement Plan  Personal Savings and Investments

16. Important Factors  At what age do I want to retire?  How many years will I spend in retirement?  What will be my income from my employers’ retirement and Social Security?  How much will I have in personal investments?  What will be the return on my investments?  What is your vision of retirement?

17. Resources For Making Retirement Estimates  Ballpark Estimate (American Savings Education Council or ASEC)  http://www.asec.org http://www.asec.org  Social Security benefit estimates and Web site:  http://www.ssa.gov http://www.ssa.gov

18. Planning for your future  Resources to prepare for tomorrow  Put your retirement vision down on paper  Seek advice of financial planner  Support services  Employer flexibility options  Family Medical Leave  Reimbursement for caregiving  Tax deductions and credits  Pre-retirement financial planning education  Life planning seminars (employer-sponsored)

19. Resources WISER Women’s Institute for a Secure Retirement WISER Women’s Institute for a Secure Retirement www.wiserwomen.org www.wiserwomen.orgwww.wiserwomen.org Eldercare Locator www.eldercare.gov National Alliance for Caregiving www.caregiving.org Met Life Mature Market Institute www.maturemarketinstitute.com Family Caregiver Alliance www.caregiver.org www.caregiver.orgwww.caregiver.org National Family Caregiver Association www.nfcacares.org www.nfcacares.orgwww.nfcacares.org The Caregiver Resource Center www.caregiverresourcecenter.com www.caregiverresourcecenter.comwww.caregiverresourcecenter.com

20. Resources (Cont.) Financial Planning Association http://www.fpanet.org http://www.fpanet.orghttp://www.fpanet.org Certified Financial Planner Board of Standards http://www.cfp.net http://www.cfp.nethttp://www.cfp.net

21. Plans for Implementation  What information from this presentation will you use or share with someone you know who is a caregiver?  How will you use information from this presentation?  What policy changes would you suggest?

22. References Austin, J. Caregiving is in Your Future. ESP National Conference, September 2007, Charleston, SC English, T. (2007). Unpaid caregiving extracts hidden costs from labor force, economy. Retrieved from seniorjournal.com on May 22, 2008. Family Caregiver Alliance. Women and Caregiving: Facts and Figures. Retrieved from www.caregiver.org on May 22, 2008. www.caregiver.org Financial Steps for Caregivers: What You Need to Know about Money and Retirement. WISER 2008. Hounsell, C. (March 2007) Family Caregiving: State of the Art, Future Trends. Women’s Institute for a Secure Retirement. Orel, N., Ford, R. & Brock, C. (2004) Women’s Financial Planning for Retirement: The impact of disruptive life events. Journal of Women & Aging. Resources for Caregivers. (2007). MetLife Mature Market Institute and National Alliance for Caregiving in cooperation with the National Association of Area Agencies on Aging. Stoller, E. (1983) Parental Caregiving by Adult Children. Journal of Marriage and the Family. Swanberg, J., Kanatzar, T. Memdiondo, M. & McCoskey, M. (2006). Caring for Our Elders: A Contemporary Conundrum for Working People. Families in Society. The Cost of Caregiving. Retrieved from www.caregiversresourcecenter.com on May 22, 2008. www.caregiversresourcecenter.com White House Conference on Aging ( December, 2005). Care for the Caregiver: A Place to Start. Young, L. & Newman, S. (2003). Caregiving and Retirement Planning: What Happens to Family Caregivers Who Leave the Work Force. Family Caregiver Alliance.

23. Developed by: Ann A. Berry, Ph.D., University of Tennessee Carolyn L. Bird, Ph.D., North Carolina State University