How You Can Cover the Costs of Caregiving
As if managing your family’s health care wasn’t a big enough job, there’s also the inconvenient fact that it’s unpaid work. Whether you’re a caregiver now or might become one, here’s how to be practical about the costs.
Get what you need now
“If your employer offers time off to take your children to the doctor, use it,” says Katie Martin of the National Partnership for Women and Families. “Saying with confidence what we need to get the work done is how we’re going to move the needle.” Does missing work mean not getting paid? Research says that whatever the official policy is, an understanding boss can make things easier. “As the CEO of my company, I want to encourage my employees to schedule ‘well-being’ time on their calendars, and I hope other companies will follow,” says Wendy Lund, CEO of GCI Health, a global healthcare communications company. If your boss is not that type, think about a job-change strategy that might land you with someone better.
Make a plan for the future...
Nobody loves thinking about long-term illness or the end of life, but “you don’t want to be standing in the middle of all that emotion trying to figure out what to do,” says Susan Kay, a vice president at MFS Investment Management. “Decisions made ahead of time are just better.” You need to know your budget, your retirement goals, and how anyone else you’re going to be responsible for will be covered. You can hire a fee-only financial adviser, visit the tools that probably exist on your bank’s or brokerage’s website, or go to one of the many online sites that will help you do this, from Mint (free) to youneedabudget.com ($6.99 per month).
...and a backup plan too
You may be intending to work later in life, but what if Grandma needs more help or an accident leaves you out of a job? “Things can happen out of nowhere, so you need to think through your options now,” says Kay. Run your retirement numbers with a few variations, or have your adviser do it. If you choose to take a year off to help, you’ll need to adjust your budget and maybe your retirement expectations. Consider opening a spousal IRA to keep retirement savings on track.
9 Questions to Ask the People You Love
These are some of the hardest, most important conversations you’ll ever have. Use this as a guide to start the discussion.
Paying bills: Who should pay your bills if you suddenly can’t? Can you make sure that person has a list of regular payments plus passwords and account numbers?
Bank and investment accounts: Whom do you want to have access to these? Have you set up a way for that person to use these accounts?
Driving: How do you want to handle it if you are no longer able to drive?
Plan B: If you couldn’t live independently, what would be your preference for where to go?
Your partner: If he or she became incapacitated, would you want to move? If not, how would we make your home safe and comfortable?
Extra care: How do you expect to pay for care for yourself or your partner?
Financial planning: Have you and your partner worked with a financial adviser? Can you both access your accounts?
Your will: Do you have one? If so, where is it? Is there anything we should know about how you want it handled?
Final arrangements: Do you have ideas about what kind of funeral service you’d like and where it should be?
This piece appeared as part of a special Redbook/HealthyWomen.org package in the May 2018 issue. For more, please also see "Joan Lunden on the Emotional Cost of Caregiving" and "How to Take Care of Yourself - And Everyone Else"
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