Use these tips for building a nest egg while providing care for older loved ones.
Providing care for an aging parent is a time-consuming labor of love. Additionally, it may affect financial resources, as family caregivers may decide to take unpaid leave from work, reduce their hours, or stop working altogether.
It is common for family caregivers to set aside their long-term financial goals so that they can concentrate on a loved one’s needs. And, up to one in three family caregivers who are close to retiring are using their own savings to care for a loved one.
There are ways, however, to prevent compromising your retirement resources while caring for a loved one.
What Are Some Tips for Building a Nest Egg While Caring for a Loved One?
- Start with a spending plan. Work with a financial consultant to make a plan that allows you to continue to set aside money for retirement. It is vital to make saving a high priority in your budgetary plan, even if you can’t save the amount you did prior to taking on the role of caregiver. If you have not already, set up an IRA, which enables you to make the most of tax benefits. Determine if your employer offers a company match for retirement savings as well.
- Investigate other savings options. If you decide not to work outside the home, see if you qualify for a spousal IRA. You can also explore an SEP (simplified employee pension) plan if you’re doing freelance work 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 person’s financial status, they might be able to access benefits programs like Medicaid or Supplemental Social Security. You may even have the option to claim the person as a dependent to get a break on your own taxes. Using your own savings should always be the absolute last option.
While the immediate needs your loved one is experiencing might seem to demand your full attention, make 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 policy, for example, can help with the expense of home care services whenever the need arises.
How Do In-Home Care Services Help Me Prepare for My Own Retirement?
Working with a home care provider, like Compassionate Nursing Services, serving St. Louis, Ladue, O’Fallon, and the surrounding areas, helps you achieve a comfortable balance between earning an income and caring for an aging loved one. You can decide how much time to dedicate to working while knowing your parent is receiving excellent care, additional opportunities for socialization and fun outings, and much more.
Our highly trained and experienced caregivers are here to help as much as needed, whether just a few hours each 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 your loved one set and achieve new goals. Contact us at 314-432-4312 to learn more about the many ways in-home care services can help!