Imagine having to choose between your own health and the health of your parents.
According to 2018 data from Genworth studying caregivers, almost half said their duties had caused their own health to suffer. The same data shows that caretakers dip into savings and retirement, lower their quality of living, or save less to make ends meet for their loved ones.
If you're an adviser in the US, there's a good chance you already have a client who is a caregiver. In a Harvard Business School study examining 1500 employees and 300 HR leaders, 3 out of 4 U.S. workers were caretakers.
Being a caretaker can put a strain on your clients' ability to work: of the employees studied, 32% left their work to take help a family member with daily living needs, and 25% left to take care of an ill or disabled spouse, partner, or other family member.
Another 2018 study by Northwestern Mutual found that 21% of caregivers had to reduce their hours at work. And a 2015 article from Pew Research states caregivers are typically between 45-64 years old - retirement adjacent. This makes insuring caregivers are prepared all the more critical.
And it's not just the ability to afford caregiving itself that drives employees to quit. According to Harvard's study, 44% of the workers who quit did so because of the "inability to find trustworthy and qualified paid help."
The bottom line? Caregiving demands money, but also time - which translates into money. Losing work - for any reason - is something to help a client save for. Couple that with the financial obligations of caregiving itself and proactive planning becomes more necessary. Without precaution, long term caregiving for a child, parent, or anyone else can quickly turn stressful for your clients.
As your clients' financial sage, you can guide them through this sticky process.
Find out about your clients' family demands from the onset. Ask them about their family members that could require care: children, potential children, parents. The issue of permanent or long-term care can be highly sensitive, so tread delicately, but get your questions answered. Knowing that your client will have future caregiving duties can help you shape their goals, assets, and product purchases around this tremendous responsibility. You can also show them that their ability to support their loved one can withstand market dips and other volatile situations.
Beyond the pure financial aspect of planning for your clients, there is supporting them through the emotional toll. Showing your clients they'll be secure through caregiving duties will likely ease some of the mental burden. You can take it a step further further by recommending support groups to them, or connecting them with other means of support.
Being a caregiver is common, so planning for it shouldn't be taboo. Empower your clients to show them they can prepare for a calm future.
