Many older adults choose to remain in their own homes, and a common reason given is that it’s more affordable than moving into a retirement community. While this can be true in certain situations, the actual cost savings are often smaller than people expect. That’s because most older adults who stay at home rely heavily on unpaid help from family members.
A common predicament
According to the joint study Caregiving in the U.S. 2015 by the National Alliance for Caregiving and AARP, more than 43.5 million Americans provide unpaid care for someone else—over 20 percent of the adult population. Some caregivers assist children with medical needs, but the largest share are helping other adults, often aging parents or spouses. A portion of caregivers are balancing responsibilities for both children and an adult relative.
Unpaid family caregivers commonly help older adults with everyday tasks such as eating, bathing, dressing, and mobility. They also frequently handle transportation to appointments, run errands, and take care of household chores—responsibilities that would otherwise require paid services.
A “cost-cutting” approach that can become expensive
Research by MetLife found that across a lifetime, the average unpaid family caregiver loses about $304,000 in wages and benefits. That figure reflects more than just missed paychecks. Caregivers often reduce work hours, take unpaid leave, or retire earlier than planned to manage caregiving duties. These changes can lead to lower lifetime earnings, reduced retirement contributions to accounts like 401(k)s and IRAs, and smaller Social Security benefits.
Consider other costs to caregivers
Beyond financial loss, unpaid caregiving carries well-documented nonfinancial costs. Caregivers face increased stress, higher risk of health problems, and less time for family, friends, and personal pursuits. These physical and mental impacts can undermine a caregiver’s long-term well-being and create additional burdens for the household.
If your goal is to age in place with help from a family member, it’s important to recognize that much of the perceived cost savings may be paid for by the unpaid caregiver. Before relying on a loved one for long-term care, have an open, honest conversation about expectations, responsibilities, and potential personal and financial costs. This helps ensure both the person receiving care and the caregiver understand and agree to what’s involved.
Learn more about the advantages of choosing to live in a CCRC. >>
Related:
Home Alone: Is It the Best Option for Aging Adults?
Aging in Place: A Gift to the Children?