family caregiver reviewing finances online

Providing care for an aging parent is a time-consuming labor of love. It may also influence finances, as family caregivers may elect to take unpaid leave from work, reduce their hours, or stop working altogether.

It is not unusual for family caregivers to set aside their long-term financial plans in order to give full attention to a loved one’s needs. And, as many as one in three family caregivers who are close to retiring are dipping into their own savings to care for a loved one.

There are strategies, however, to prevent compromising your retirement funds even when taking care of a loved one.

How to Make Retirement Possible While Caring for an Aging Loved One

  • Focus on a budget. Work with a financial consultant to make a plan that allows you to continue to put aside savings for retirement. It’s essential to make saving a top priority in your budgetary plan, even if you’re not able to save as much as you did prior to taking on the job of caregiver. If you have not already, set up an IRA that enables you to make the most of tax benefits. Find out if your employer offers a company match for retirement savings too.
  • Consider other savings options. If you decide not to work outside of the home, see if you qualify for a spousal IRA. You can also explore an SEP (simplified employee pension) plan if you’re working on a freelance basis or running your own business.
  • Whatever you do, do not exhaust your savings in order to manage a loved one’s care. Depending on the senior’s financial state, they might be entitled to benefits programs like Supplemental Social Security or Medicaid. You might even have the option to claim the person as a dependent to obtain a break on your own taxes. Using your own savings should always be the absolute last resort.

Though the immediate needs your family member is experiencing might appear to require your full attention, make time to make your own long-term planning a consideration 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 policy, for instance, can assist with the cost of home care services when the need arises.

How Can In-Home Care Services Help Me Prepare for My Retirement?

Partnering with an in-home care provider, like Grace Home Care lets you achieve a comfortable balance between earning an income and caring for a family member. You can determine how much time to devote to working while knowing your loved one is receiving outstanding care, additional opportunities for fun outings and socialization, and more.

Our highly 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 785-286-2273 for more information on how our award-winning care in the greater Topeka area can help!