These tips for helping family caregivers build retirement funds are important for those wondering how to balance care costs and their personal finances.
Providing care for an aging parent is a time-intensive labor of love. It can also affect financial resources, as family caregivers may opt to reduce their work hours, take unpaid leave, or quit working altogether. It is common for family caregivers to set aside their long-term financial goals in order to concentrate on a loved one’s needs. And, as many as one out of three family caregivers close to retirement are dipping into their own savings to care for a loved one.
There are strategies, however, for helping family caregivers avoid compromising retirement finances even when caring for a loved one.
How Do I Improve My Retirement Savings While Caring for a Loved One?
- Start with a spending plan. Work with a financial consultant to create a plan that allows you to continue to put aside savings for retirement. It’s important to make saving a top priority in your budget, even if you are struggling to save as much as you did before taking on the job of caregiver. If you have not already, set up an IRA to help you capitalize on tax benefits. Find out if your employer offers a company match for retirement savings as well.
- Explore alternative savings options. If you decide not to work outside the home, see if you qualify for a spousal IRA. You may also explore an SEP (simplified employee pension) plan if you are working on a freelance basis or running your own business.
- Whatever you do, don’t use up your savings in order to manage a loved one’s care. Depending on your family member’s financial state, they could be entitled to benefits programs such as Supplemental Social Security or Medicaid. You might also be able to claim the person as a dependent to get a break on your own taxes. Using your own savings should be the absolute last resort.
Though the immediate needs your family member is facing might appear to require your full attention, carve out time to make your own long-term planning a priority as well. Your financial advisor can help you formulate a retirement plan that includes consideration for future long-term care needs. A long-term care insurance policy, for example, can help with the expense of in-home care services whenever the need arises.
How Can Home Care Services Help Me Prepare for My Retirement?
Partnering with an in-home care provider, like Abby Senior Care, lets you achieve an ideal balance between earning an income and caring for a loved one. You can decide how much time to devote to working while knowing your loved one is receiving exemplary care, additional opportunities for socialization and fun outings, and much more.
Our fully trained and experienced caregivers are here to help as much as needed, whether only a few hours each week, 40 hours or more to let you work full-time, or even 24 hours a day, around the clock. Let us help both you and the person in your care set and achieve new goals.
Abby Senior Care proudly offers top-rated in-home care services for families in Denver, Aurora, Littleton, and surrounding Colorado communities. Contact us at 303-699-8840 to learn more about how we can assist!