Caregiving Costly to Family Caregivers

The rewards of caring for a loved one who needs our help can be substantial. It’s an opportunity to pay something back, to offer a return on the loving investment someone once made in us. It’s a chance to help preserve a quality life for an individual who has a tough time completing life’s daily tasks. It’s the joy of knowing that we are easing someone’s way, lifting burdens and making sure they are not alone.

Family caregivers lovingly offer their help free of charge, contributing their time, their energy and often their own well-being. What they do is of incalculable emotional value and of enormous social worth.

In the past, AARP has tallied what society would be paying for the labor that family caregivers so willingly donate: In 2013, about 40 million family caregivers provided 37 billion hours of care worth an estimated $470 billion to their parents, spouses, partners and other adult loved ones.

The total estimated economic value of uncompensated care provided by family caregivers in 2013 surpassed total Medicaid spending ($449 billion) and nearly equaled the annual sales ($469 billion) of the four largest U.S. tech companies combined (Apple, Hewlett-Packard, IBM and Microsoft).

What we haven’t included in the calculations before is the significant amount of money family caregivers often spend out of their own pockets as part of their contribution. A new AARP study, “Family Caregiving and Out-of-Pocket Costs: 2016 Report,” estimates that family caregivers spend an average of $6,954 on out-of-pocket costs related to caregiving, nearly 20 percent of their annual income.

Out-of-pocket spending is even higher among Hispanic/Latino caregivers ($9,022 annually, representing 44 percent of their income). African American caregivers report costs similar to white caregivers, but that amounts to a much greater percentage of income — 34 percent vs. 14 percent.

To cover the extra expense, many family caregivers have to pare back their own spending. They cut back on saving for retirement, leisure spending, eating out and vacations, and many have dipped into personal or retirement savings. See the full report at www.aarp.org/caregivercosts.

Clearly, family caregivers could use a break. The bipartisan Credit for Caring Act would help give them some of the financial breathing room they need, with a federal tax credit of up to $3,000 for those who are eligible. AARP and other national organizations are supporting this bill.

Each of us has the opportunity to give caregivers other measures of relief — by making a meal, doing the laundry, running an errand, raking leaves … any warm, friendly assistance that shortens their endless to-do lists.

They deserve — and appreciate — everything we can give them.

Full Article & Source:
Caregiving Costly to Family Caregivers

Press Release: AARP Backs Bipartisan Credit for Caring Act

Introduced yesterday in Congress, the bill offers a federal tax credit for family caregivers

Press Center, March 4, 2016 Contact: Greg Phillips, 202-434-2560, media@aarp.org, @AARPMedia;

Washington, DC – AARP commends U.S. Representative Tom Reed (R-NY) and U.S. Representative Linda Sanchez (D-CA) on the bipartisan introduction of H.R. 4708, the Credit for Caring Act, that supports America’s family caregivers by offering a federal tax credit of up to $3,000 for those who qualify.

This tax credit would provide eligible family caregivers caring for loved ones of all ages with some financial relief and help them pay for services such as home care, adult day care, respite care, and other supports. Family caregivers help older adults and people with disabilities live independently in their homes and communities, saving taxpayer dollars by helping to delay or prevent more costly nursing home care and preventing unnecessary hospital readmissions. In addition to other assistance family caregivers provide, nearly 70% of family caregivers pay out-of-pocket to help provide care to their loved ones.

“The bipartisan Credit for Caring Act sends a clear message that support for family caregivers is not bound by political ideologies,” said AARP Chief Advocacy and Engagement Officer Nancy LeaMond. “This legislation will help ease the financial burden faced by many family caregivers today.” The strong majority (83%) of registered voters age 40 and older, across party lines, support providing a federal income tax credit to family caregivers for the support and care of loved ones, according to a poll conducted by AARP.< br/>< br/> Many family caregivers pay for caregiving expenses with their personal savings, too often causing them to reduce or stop saving for their own future. One survey found that over 40% of family caregivers spend more than $5,000 a year on caregiving expenses.1 Another survey found family caregivers of persons age 50 and older reported spending an average of more than 10% of their annual income on caregiving expenses, an average of $5,531 out-of-pocket. Long-distance family caregivers averaged $8,728 in annual expenses.

The Credit for Caring Act is important for America’s silent army of family caregivers who provide 37 billion hours of unpaid care, valued at an estimated $470 billion annually. In addition to AARP, other groups supporting this legislation include the American Heart Association/American Stroke Association, National Multiple Sclerosis Society, National Council on Aging, Autism Speaks, Caregiver Action Network, and the Center for Elder Care and Advanced Illness, Altarum Institute.

AARP urges Congress to pass the Credit for Caring Act. < br/>< br/> For more information on caregiving, visit AARP’s Caregiving Resource Center at www.aarp.org/caregiving.
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