When couples weigh the price of whether one of them should take a career break to care for an aging parent or another family member, they usually make a pretty simple price calculation: they compare the earning power against the cost of a professional caregiver. There are a number of other costs to take into consideration with the Price Caregivers Pay.
Less will be paid into Social Security resulting in lower income in retirement for the rest of that person’s life. If out of the workforce long enough, Social Security disability might be restricted as well, should it be needed (caregivers in LTC facilities are lumped in with the most dangerous occupation for disability insurance).
They also face loss of work experience, meaning if they later return to work, it will be at a much lower income than they left work at. Training updates, industry changes and opportunities are left behind. Promotions and transfers may need to be declined by the remaining working spouse and must be taken into consideration. Then consider the amount of hours that may be spent in this new occupation.
The average age of a caregiver for a parent or other aging loved one is 49 years old. This is right in the middle of peak earning years and often is a far more expensive strategy than many think of.
The average number of hours spent as a caregiver between ages 45 and 54 is 25.8 hours per week. For caregivers age 65 to 74 it is 30.7 hours per week. This is a large chunk of time making part time work unavailable, especially when sudden changes of schedule are considered.
If this is something you are concerned about, and do not want to happen to you (or your children) why not consider LTC insurance to pay for such care? This can allow you to continue your occupation while spending quality time with the loved one instead of their becoming a burden.
LTC insurance requires a number of things taken into consideration, mainly how much of the bill can be paid out of pocket and how little insurance may actually be needed. Lifestyle changes when care is needed, along with less vehicles, toys, travel, etc. Thus more of available income than one might first imagine can be redirected towards the costs of care.
Interest in the nest egg can also help pay the price of care, without touching the principal. Thus only the shortfall may need to come from LTC insurance.
It is essential to investigate this type of insurance with someone who has the knowledge of how lives change when care is needed to arrive at an appropriate recommendation. At www.TheLongTermCareGuy.com we have been doing nothing but LTC planning for 25 years now. Give us a call at (920) 884-3030. We will be happy to help you investigate this subject.