It is possible to continue to build a nest egg as a family caregiver with these tips.
Providing care for an aging parent is a time-intensive labor of love. It may also influence finances, as family caregivers may choose to take unpaid leave from work, reduce their hours, or stop working altogether.
It’s not unusual for family caregivers to set aside their long-term financial plans in order to prioritize a loved one’s needs. And, up to one in three family caregivers close to retiring are dipping into their own savings to care for a loved one.
There are strategies, however, to avoid compromising your retirement funds when caring for a family member and continue to build a nest egg as a family caregiver.
How Can I Build My Retirement Savings While Caring for My Elderly Parent?
- Start with a budget. Seek advice from a financial consultant to build a strategy that allows you to continue to put aside money for retirement. It is essential to make saving a top priority in your budgetary plan, whether or not you’re not able to save as much as you did prior to taking on the role of caregiver. If you have not already, set up an IRA so you’re able to make the most of tax benefits. Determine if your employer offers a company match for retirement savings as well.
- Explore 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, don’t use up your savings for your loved one’s care. Depending on the senior’s financial status, they may be able to access benefits programs such as Medicaid or Supplemental Social Security. You might also be able to claim the person as a dependent to obtain a break on your own taxes. Using your own savings should be the absolute last option.
While the immediate needs your loved one is facing might appear to demand your full attention, make time to make your own long-term planning a priority as well. Your financial advisor can help you create a retirement plan that includes consideration for future long-term care needs. A long-term care insurance plan, for instance, can assist with the expense of home care services if the need arises.
How Do Home Care Services Help Me Prepare for My Own Retirement?
Partnering with an in-home care provider, like Anthem Home Care, serving Fulton, Corpus Christi, Ingleside, and nearby areas, allows you to achieve a comfortable balance between earning an income and caring for a loved one. You can determine how much time to devote to working while knowing your loved one is receiving exemplary care, additional opportunities for fun outings and socialization, and much more.
Our highly trained and knowledgeable 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 361-643-2323 for more information about the many ways in-home care services can help!