Caregiving during pandemic increased financial stress for many Americans
Many people gave tirelessly to take care of family or friends during the pandemic. That commitment, however, came at a price.
The pandemic brought out the best in many people as they gave tirelessly to take care of family or friends. That commitment, however, came at a price.
“Unless you’re in the thick of providing care, you may not realize the impact the experience can have,” said Stacey Watson, senior vice president of Life Event Planning at Fidelity Investments. “When a member of the family takes on caregiving responsibilities, others may not realize the true toll it takes. Awareness and communication are critical elements to a successful support system that benefits both the cared-for and the caregiver.”
Caregiving may have a profound impact on a person’s financial goals, social life, mental health and career, according to the Fidelity Investments American Caregivers study. Although more than three-quarters of respondents say the choice to provide care was something they wanted to do regardless of the challenges, the pandemic has amplified their stress, with more than half of current caregivers saying their hours devoted to care have increased.
The study, which examines the emotional and financial costs of caregiving, finds that more than half of respondents say that the decision to become a caregiver was a mostly emotional rather than a practical decision, with 83 percent feeling they had no other choice but to assume the responsibilities.
Seventy-nine percent also say the decision set them back on a variety of fronts, including financial goals, social life, mental health and their career.
On average, caregivers for children reported providing 61 hours of care per week, while caregivers for adults spend 28 hours per week. These obligations clearly make continuing employment responsibilities difficult, and according to the survey findings, more than one-quarter of caregivers for adults left a job, took a leave of absence or shifted to part-time work.
However, even for those adult caregivers who took short-term leave or didn’t leave at all, one-fifth say they’ve turned down or elected not to pursue opportunities at work because it would have interfered with their caregiving responsibilities.
The decision to leave the workforce also has other hidden costs, including the adverse impact it may have on potential raises and promotions, contributions and potential growth of retirement savings, additional employer contributions to any retirement and/or health savings accounts, health-care coverage and Social Security credits.
According to the study findings, just one third took the time to calculate at least one of these costs, and very few calculated all. Perhaps as a result, 62 percent indicate they sometimes felt overwhelmed by the financial stress.
When it comes to offering advice to people contemplating taking on caregiving duties, experienced caregivers agree that whenever possible, make planning for care a family affair, and don’t be afraid to ask for help.
“Caregiving can be a tremendously rewarding experience, but to lessen the emotional burden, having a good support system in place is essential,” Watson said.
“Although selflessness comes with the territory, the problem with neglecting one’s own needs can be disastrous, creating a sense of helplessness and burnout. That’s why it’s important to take time to plan for as many contingencies as you possibly can — and don’t be afraid to ask for help when you need it.”
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