If You're a Caregiver, Your Retirement Is in Danger

A study of 3,074 nonprofessional or unpaid caregivers by the Transamerica Institute found caring for loved ones can imperil their retirement, reports CNBC . "Caregiving responsibilities can impact a caregiver's finances, ranging from lost income due to time off the job to incurring out-of-pocket expenses on behalf of the care recipient," says Transamerica Institute President Catherine Collinson. The study found 76 percent of employed caregivers have sought accommodations at work to help them balance their duties, including using vacation and sick days, reducing hours or responsibilities, and quitting or retiring. Those who leave their jobs lose their primary source of income, cannot participate in a 401(k), and lose access to their employer's health insurance plan. The study estimated caregivers spend an average $150 a month to cover expenses for their loved one, while 75 percent of caregivers do not receive any payment or financial aid for their duties. The Transamerica Institute offers suggestions to help people balance their personal finances as they care for a senior parent, including attempting to receive payment. Some states may provide such payments if the loved one qualifies for Medicare, although the Center for Medicaid & Medicare Services recently announced guidance for states that are considering Medicaid work requirements. Not quitting one's job is also recommended, as is maintaining one's own financial health.