Building retirement savings for caregivers is possible while providing care for an older loved one.
Caring for a senior parent is a time-consuming labor of love. It can also influence financial resources, as family caregivers may decide to take unpaid leave from work, reduce their hours, or stop working altogether. It is common for family caregivers to set aside their long-term financial plans in order to prioritize a loved one’s needs. And, as many as one out of three family caregivers who are close to retirement are using their own savings to care for a senior loved one.
There are methods, however, to avoid compromising retirement resources while caring for a loved one and continue building retirement savings for caregivers.
How Can I Build My Retirement Savings While Taking Care of an Aging Loved One?
- Start with a budget. Seek advice from a financial consultant to create a strategy that enables you to consistently put aside money for retirement. It’s essential to make saving a top priority in your budgetary plan, even if you’re unable to save the amount you did prior to taking on the role of caregiver. If you have not already, set up an IRA so you can take advantage of tax benefits. Find out if your employer offers a company match for retirement savings as well.
- Investigate alternative savings options. In the event that you decide not to work outside of the home, see if you are eligible for a spousal IRA. You may want to explore an SEP (simplified employee pension) plan if you’re working on a freelance basis or running your own business.
- Whatever you do, do not deplete your savings in order to manage a loved one’s care. Depending on your family member’s financial status, they may be entitled to benefits programs such as Medicaid or Supplemental Social Security. You might even have the option to claim the senior as a dependent to receive a break on your own taxes. Using your own savings should always be the absolute last resort.
Though the immediate needs your family member is facing might appear to demand your full attention, carve out time to make your own long-term planning a priority as well. Your financial advisor can help you develop a retirement plan that includes consideration for future long-term care needs. A long-term care insurance plan, for instance, can assist with the price of in-home care services when the need arises.
How Can Home Care Services Help Me Prepare for My Retirement?
Partnering with a home care provider, like At-Home Care Company, serving Boone, Altoona, Des Moines, and the surrounding areas, lets you achieve a comfortable balance between earning an income and taking care of a family member. You can decide how much time to dedicate to working while knowing your loved one is receiving excellent care, additional opportunities for fun outings and socialization, and more.
Our fully trained and knowledgeable caregivers are here to help as much as needed, whether just a few hours every week, 40 hours or more to help you to work full-time, or even 24 hours a day, around the clock. Let us help both you and the senior in your care set and achieve new goals. Call us at 515-292-2650 for more information on how in-home care services can help!