These tips can help family caregivers grow retirement funds while caring for senior loved ones.
Caring for an aging parent is a time-intensive labor of love. It can also impact finances, as family caregivers may opt to reduce their work hours, take unpaid leave, or quit working altogether.
It is not unusual for family caregivers to put aside their long-term financial objectives in order to focus on a loved one’s needs. And, up to one in three family caregivers who are close to retirement are using their own savings to care for a loved one.
There are strategies, however, to grow retirement funds even when caring for a loved one.
How Do I Grow Retirement Funds While Taking Care Of My Parent?
- Begin with a budget. Work with a financial consultant to create a plan that allows you to consistently set aside savings for retirement. It’s crucial to make saving a top priority in your budget, even if you’re unable to save as much as you did prior to taking on the role of caregiver. If you haven’t already, set up an IRA so you’re able to take advantage of tax benefits. Determine if your employer offers a company match for retirement savings too.
- Explore other savings options. If you decide not to work outside of the home, see if you qualify for a spousal IRA. You may also explore an SEP (simplified employee pension) plan if you are working on a freelance basis or running your own business.
- Whatever you do, do not deplete your savings in order to manage a loved one’s care. Depending on your loved one’s financial status, they might qualify for benefits programs like Supplemental Social Security or Medicaid. You might also be able to claim the person as a dependent to get a break on your own taxes. Using your own savings should always be the last option.
Though the immediate needs your family member is facing might appear to require your full attention, carve out time to make your own long-term planning a priority as well. Your financial advisor can help you build a retirement plan that includes consideration for future long-term care needs. A long-term care insurance plan, for instance, can help with the expense of home care services when the need arises.
How Do Home Care Services Help Me Prepare for My Own Retirement?
Working with an in-home care provider, like Home With You Senior Care lets you achieve an ideal balance between earning an income and caring for an aging parent. You can determine how much time to devote to working while knowing your loved one is receiving exceptional care, additional opportunities for fun outings and socialization, and much 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. Contact us at 410-756-0959 to learn more about our award-winning home care in Owings Mill, Towson, and the surrounding areas.