These strategies for building retirement savings are designed for family caregivers.
Caring for an older parent is a time-intensive labor of love. It can also affect finances, as family caregivers may decide 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 so that they can concentrate on a loved one’s needs. And, as many as one out of three family caregivers who are about to retire are using their own savings to care for a loved one.
There are, however, effective strategies for building retirement savings and protecting your next egg while caring for an older loved one.
How Can I Increase My Retirement Savings While Caring for a Loved One?
- Focus on a budget. Seek advice from a financial consultant to make a plan that enables you to consistently set aside savings for retirement. It’s crucial to make saving a top priority in your budget, even when you’re unable to save the amount you did before taking on the role of caregiver. If you haven’t already, set up an IRA so you can capitalize on tax benefits. Determine if your employer offers a company match for retirement savings too.
- Investigate alternative savings options. In the event that you decide not to work outside the home, see if you are eligible for a spousal IRA. You may want to explore an SEP (simplified employee pension) plan if you are doing freelance work or running your own business.
- Whatever you do, don’t exhaust your savings in order to manage a loved one’s care. Depending on your family member’s financial state, they might be able to access benefits programs such as Supplemental Social Security or Medicaid. You might even have the option to claim the person as a dependent to receive a break on your own taxes. Using your own savings should always be absolutely the last option.
Though the immediate needs your loved one is facing might appear to demand your full attention, carve out time to make your own long-term planning a consideration as well. Your financial advisor can help you formulate a retirement plan that includes consideration for future long-term care needs. A long-term care insurance policy, for example, can assist with the expense of in-home care services when the need arises.
How Do In-Home Care Services Help Me Prepare for My Own Retirement?
Working with an in-home care provider, like Morning Glory Home Care, serving Alton, Highland, and the surrounding areas, helps you achieve an ideal balance between earning an income and caring for a family member.
You can determine how much time to devote to working while knowing your aging parent is receiving outstanding care, additional opportunities for fun outings and socialization, and more.
Our fully trained and knowledgeable caregivers are here to help as much as needed, whether only a few hours each week, 40 hours or more to let you 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. Reach out to us at 618-667-8400 for more information on the many ways in-home care can assist!