Written by: Rachel Brauner
The U.S. population aged 65 and older grew nearly five times faster than the total population between 1920 and 2020, according to the 2020 Census. By 2030, over 20% of the U.S. population will be 65 years or older, with the most significant growth occurring among those aged 80 and older, who face the highest risk of disability (Keita Fakeye et al., 2022).
In recent years, the role of family caregivers has become increasingly prominent as more individuals find themselves balancing the demands of employment with the responsibilities of caring for loved ones. While caregiving is often a labor of love, it comes with significant economic consequences that can affect the caregivers and the broader economy.
The Growing Population of Family Caregivers
According to recent studies, approximately 53 million Americans are unpaid family caregivers, with many of them also holding down jobs (AARP & National Alliance for Caregiving, 2020). These caregivers provide essential support to elderly parents, disabled spouses, and children with special needs, among others. The dual responsibility of working and caregiving creates a unique set of challenges that can lead to financial strain and workplace conflicts.
Financial Strain
A recent study highlights the significant economic impact of caring for an older adult, especially for employed family caregivers (Keita Fakeye et al., 2022). These caregivers face substantial financial burdens due to the dual responsibilities of work and caregiving. The study found that employed caregivers incur higher out-of-pocket expenses compared to their retired or unemployed counterparts, often spending more on medications, medical care, and in-home assistance. These financial strains are further compounded by losses in work productivity, increasing the overall economic pressure. The reduction in work hours and career progression can lead to a significant decrease in lifetime earnings, reduced retirement savings, and lower Social Security benefits (Schulz & Eden, 2016).
Health Care Costs & Out-of-Pocket Expenses
In addition to lost income, employed family caregivers often face increased out-of-pocket expenses related to the care of their loved ones. These expenses can include medical bills, home modifications, transportation, and the cost of hiring additional help. The AARP and National Alliance for Caregiving (2020) reported that family caregivers spend an average of $7,200 annually on out-of-pocket costs related to caregiving, a significant burden for those already dealing with reduced income.
Moreover, caregivers are at higher risk of experiencing physical and mental health problems due to the stress and demands of caregiving. These health issues can lead to increased medical expenses, further exacerbating their financial strain (Schulz & Eden, 2016).
Potential Solutions
Addressing the economic challenges faced by employed family caregivers requires a multifaceted approach. Some potential solutions include:
- Workplace Flexibility: Employers can implement flexible work arrangements, such as telecommuting, flexible hours, and job-sharing, to help caregivers balance their responsibilities without sacrificing their income or career progression.
- Paid Family Leave: Expanding access to paid family leave would allow caregivers to take the time they need to care for their loved ones without the financial penalty of lost wages.
- Support Services: Increasing access to affordable and high-quality caregiving services, such as adult day care, respite care, and home health aides, can provide much-needed support to caregivers and reduce their overall stress and financial strain.
The economic impact on employed family caregivers is a complex issue with far-reaching consequences. By addressing the financial challenges faced by caregivers, we can help ensure that they are able to continue providing care for their loved ones without sacrificing their own financial security and well-being.
References
AARP, & National Alliance for Caregiving. (2020). Caregiving in the U.S. 2020. AARP. https://doi.org/10.26419/ppi.00103.001
Keita Fakeye, M. B., Samuel, L. J., & Wolff, J. L. (2022). Financial Contributions and Experiences of Non-Spousal, Employed Family Caregivers. Journal of Applied Gerontology, 41(12), 2459-2468. https://doi-org.srv-proxy2.library.tamu.edu/10.1177/07334648221115261
Schulz, R., & Eden, J. (2016). Families caring for an aging America. The National Academies Press.
United States. Bureau of the Census. (2020). Older Population Grew From 2010 to 2020 at Fastest Rate Since 1880 to 1890. U.S. Census Bureau.
*Image Source: iStockphoto ID 1248740172; PIKSEL
