Caring for an aging parent is a time-intensive labor of love. It can also impact financial resources, as family caregivers may opt to take unpaid leave from work, reduce their hours, or stop working altogether.
It is not uncommon for family caregivers to set aside their long-term financial plans to be able to focus on a loved one’s needs. And, as many as one out of three family caregivers who are about to retire are using their own savings to care for a loved one.
There are strategies, however, to help caregivers prepare for retirement and avoid compromising their nest egg, while caring for an aging parent.
How Do I Increase My Retirement Savings While Caring for My Parent?
- Start out with a budget. Seek advice from a financial advisor to make a plan that enables you to consistently set aside money for retirement. It’s important to make saving a top priority in your budget, even if you’re unable to save as much as you did prior to taking on the role of caregiver. If you haven’t already, set up an IRA in order to make the most of tax benefits. Determine if your employer offers a company match for retirement savings too.
- Consider alternative savings options. If you decide not to work outside of the home, see if you qualify for a spousal IRA. You may want to explore an SEP (simplified employee pension) plan if you are working on a freelance basis or running your own business.
- Whatever you do, do not wipe out your savings for your loved one’s care. Depending on your loved one’s financial status, they might be able to access benefits programs like Supplemental Social Security or Medicaid. You may also be able to claim the senior as a dependent to receive a break on your own taxes. Using your own savings should be absolutely the last resort.
Although the immediate needs your family member is experiencing might appear to demand your full attention, set aside time to make your own long-term planning a priority as well. Your financial advisor can help you establish a retirement plan that includes consideration for future long-term care needs. A long-term care insurance plan, for instance, can assist with the expense of home care services when the need arises.
How Can In-Home Care Services Help Me Prepare for My Retirement?
Working with an in-home care provider, like Inspired Home Care, a provider of home care services in Barrington, Chicago, and nearby areas, allows you to achieve a comfortable balance between earning an income and caring for 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 socialization and fun outings, and much more.
Our fully trained and experienced caregivers are here to help as much as needed, whether just a few hours every week, 40 hours or more to allow you to 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. Call us at 847-787-7572 to learn more about how we can help!