Family Caregiving Bankrupts AARP Expert
The Wall Street Journal’s Clare Ansberry recently reported a story that is astonishing and important: Caring for Older Relatives Is So Expensive That Even AARP’s Expert Filed for Bankruptcy.
The article tells the story of Amy Goyer, the AARP’s family and caregiving expert. Despite having written two books on the subject and having her own consulting business, when both of her parents fell ill, she ended up relying on credit cards after her own finances were drained to pay for the cost of their care.
After more than 10 years of caring for her mother, who had a stroke, and her father, who had Alzheimer’s, she ended up filing for bankruptcy in 2019, having accumulated more than $100,000 in credit-card debt. In the last two years of her father’s life, his medical and in-home care expenses reached $10,000/month, $2,000/month more than he received from Social Security, pensions, long-term care insurance and Veterans Affairs benefits—-far more than many people have.
Amy is not alone, family caregivers provide an estimated $470 billion worth of free care. On average, according to an AARP study from 2021, caregivers like Amy spend 26% of their personal income on caregiving expenses. A third dip into personal savings and 12% take out a loan or borrow from family and friends.
The median annual cost of in-home care was $54,912 in 2020, up 18.5% according to a study quoted in the WSJ story.
Most of us assume that Medicare will pay for long-term care, but it doesn’t, and private long-term care insurance is expensive and the companies that offer it are constantly reducing the benefits.
Concerns about the toll long-term care is taking is behind recently introduced legislation, the Credit for Caring Act, which would provide a tax credit to eligible caregivers. But, of course, that’s not been passed.
So, what to do? First, make a plan with your family members that addresses what to do if and when there will be a need for family caregiving before there is a crisis. Second, if you are a family caregiver yourself, recognize that family caregiver burden is real, and find resources in your community for help. Third, let your elected officials know that more needs to be done.
Last, listen to my podcast conversation with Dr. Jessica Zitter about her new movie, Caregiver: A Love Story.
And click here for Family Caregiver Resources, with deep appreciation to Dr. Jessica Zitter for sharing.