Caregiving Costs Americans $3 Trillion in Lost Wages, Pension and Social Security Benefits
June 14 2011 - 10:00AM
Business Wire
Americans who provide care for their aging parents lose an
estimated three trillion dollars in wages, pension and Social
Security benefits when they take time off to do so, according to
“The MetLife Study of Caregiving Costs to Working Caregivers:
Double Jeopardy for Baby Boomers Caring for Their Parents.”
Produced by the MetLife Mature Market Institute in conjunction with
the National Alliance for Caregiving and the Center for Long Term
Care Research and Policy at New York Medical College, the study
reports that individually, average losses equal $324,044 for women
and $283,716 for men. The percentage of adults providing care to a
parent has tripled since 1994.
The researchers analyzed data from the National Health and
Retirement Study (HRS) to determine the extent to which older adult
children provide care to their parents. They also studied gender
roles, the impact of caregiving on careers and the potential cost
to the caregiver in lost wages and future retirement income.
“Nearly 10 million adult children over the age of 50 care for
their aging parents,” said Sandra Timmermann, Ed.D., director of
the MetLife Mature Market Institute. “Assessing the long-term
financial impact of caregiving for aging parents on caregivers
themselves, especially those who must curtail their working careers
to do so, is especially important, since it can jeopardize their
future financial security.”
In addition, the study found that:
- Adult children age 50+ who work and
provide care to a parent are more likely than those who do not
provide care, to report that their health is fair or poor.
- The percentage of adult children
providing personal care and/or financial assistance to a parent has
more than tripled over the past 15 years and currently represents a
quarter of adult children, mainly Baby Boomers. Working and
non-working adult children are almost equally likely to provide
care to parents in need.
- Overall, caregiving sons and daughters
provide comparable care in many respects, but daughters are more
likely to provide basic care (i.e., help with dressing, feeding and
bathing) and sons are more likely to provide financial assistance
defined as providing $500 or more within the past two years.
Twenty-eight percent of women provide basic care, compared with 17%
of men.
- For women, the total individual amount
of lost wages due to leaving the labor force early because of
caregiving responsibilities equals $142,693. The estimated impact
of caregiving on lost Social Security benefits is $131,351. A very
conservative estimated impact on pensions is approximately $50,000.
Thus, in total, the cost impact of caregiving on the individual
female caregiver in terms of lost wages and Social Security
benefits equals $324,044.
- For men, the total individual amount of
lost wages due to leaving the labor force early because of
caregiving responsibilities equals $89,107. The estimated impact of
caregiving on lost Social Security benefits is $144,609. Adding in
a conservative estimate of the impact on pensions at $50,000, the
total impact equals $283,716 for men, or an average of $303,880 for
male or female caregivers age 50+ who care for a parent.
“These family caregivers, the celebrated members of the sandwich
generation, are juggling their responsibilities to their own
families and to their parents,” said Gail Hunt, president and CEO
of the National Alliance for Caregiving. “There is also evidence
that caregivers experience considerable health issues as a result
of their focus on caring for others. The need for flexibility in
the workplace and in policies that would benefit working caregivers
is likely to increase in importance as more working caregivers
approach their own retirement, while still caring for their loved
ones.”
“As the percentage of employees who are caregivers continues to
grow, there will be greater demand on employers for help and
support. There are many workplace resources and programs that can
be made available that benefit all stakeholders since financial
stress can negatively impact physical health and workplace
productivity,” adds Timmermann.
The study contains implications for individuals, employers and
policymakers. It points out that employers can provide retirement
planning and stress management information and can assist employees
with accommodations like flex-time and family leave. Individuals,
it says, should consider their own health when caregiving and
should prepare financially for their own retirement. Policymakers
are made aware of the fact that more states are considering paid
family leave, especially as it is accrued through workers’
compensation funds. On the federal level, a voluntary long-term
care insurance program is part of the Affordable Care Act and will
likely increase public awareness of the issue.
The MetLife Study of Caregiving Costs to Working Caregivers
provides updated information first reported in two MetLife studies:
Sons at Work: Balancing Employment and Eldercare (2003) and The
MetLife Juggling Act Study: Balancing Caregiving with Work and the
Costs Involved (1999).
Methodology
The study uses data from the Health and Retirement Study (HRS)
conducted biannually by the University of Michigan with funding
from the National Institute on Aging. First fielded in 1992, the
HRS, a nationally representative sample, surveys adults over the
age of 50 and provides extensive information on this population,
including data on income, work and health status, and whether
respondents provide basic, personal care and/or financial
assistance to their parents. After cases with missing data were
eliminated from the 2008 panel, the sample was restricted to 1,112
men and women who had a parent living.
The MetLife Study of Caregiving Costs to Working Caregivers:
Double Jeopardy for Baby Boomers Caring for Their Parents can be
downloaded from www.MatureMarketInstitute.com. It can also be
ordered through Contact Us on the MetLife Mature Market Institute
Web site, or by writing to: MetLife Mature Market Institute, 57
Greens Farms Road, Westport, CT 06880 or
MatureMarketInstitute@metlife.com.
The MetLife Mature Market Institute®
The MetLife Mature Market Institute is MetLife’s center of
expertise in aging, longevity and the generations and is a
recognized thought leader by business, the media, opinion leaders
and the public. The Institute’s groundbreaking research, insights,
strategic partnerships and consumer education expand the knowledge
and choices for those in, approaching or working with the mature
market.
The Institute supports MetLife’s long-standing commitment to
identifying emerging issues and innovative solutions for the
challenges of life. MetLife, Inc. is a leading global provider of
insurance, annuities and employee benefit programs, serving 90
million customers in over 60 countries. Through its subsidiaries
and affiliates, MetLife holds leading market positions in the
United States, Japan, Latin America, Asia Pacific, Europe and the
Middle East. For more information, please visit:
www.MatureMarketInstitute.com.
National Alliance for Caregiving
Established in 1996, The National Alliance for Caregiving is a
non-profit coalition of national organizations focusing on issues
of family caregiving. The Alliance was created to conduct research,
do policy analysis, develop national programs, and increase public
awareness of family caregiving issues. Recognizing that family
caregivers make important societal and financial contributions
toward maintaining the well-being of those for whom they care, the
Alliance's mission is to be the objective national resource on
family caregiving with the goal of improving the quality of life
for families and care recipients. www.caregiving.org
Center for Long Term Care Research and Policy, New York
Medical College
The Center for Long Term Care Research and Policy at the School
of Health Sciences and Practice, New York Medical College, was
established to engage in research, education and public policy
development to improve long term care for all Americans. The
Center’s work focuses on health care disparities, health care needs
and caregiving across the lifespan and to promote fair and
equitable financing of long-term care in the United States.
Research and analysis in this report is provided by Peter S. Arno,
PhD, and Deborah Viola, PhD with statistical support from Qiuhu
Shi, PhD. www.nymc.edu/shsp/CLTC/index.html
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