More than 32 million Americans quietly pay for the care of aging relatives, and a new Edward Jones study suggests many are covering that cost with their own retirement security.
The research, done in partnership with Age Wave and The Harris Poll, found that 81% of financial caregivers to adults 65 and older are willing to reduce their own financial security to support the person in their care.
But in the same breath, 87% of the same group say they do not want to become a caregiving burden on their own families, creating a contradiction the report's authors call a “generosity paradox.”
The Harris Poll surveyed 3,223 US adults who provide financial care to people 65 and older or to adults 18 to 64 with disabilities. The survey ran from May 13 to June 9, alongside a separate Canadian sample.
Nine in 10 financial caregivers spend their own money on a care recipient, the study found, even though only 57% describe themselves as financial contributors. Among the 84% who are not fully reimbursed, out-of-pocket spending averages $8,737 a year. Edward Jones puts the total across this group at $235 billion annually.
The bill grows when the person receiving care runs short of money. Caregivers whose recipients lack sufficient resources spend an average of $12,863 a year. When the recipient is well funded, the average is $7,640. Where a care recipient has been defrauded, the figure averages $10,583, and one in five caregivers said the person in their care had been a victim of financial fraud in the past five years.
Beyond money, the survey found caregivers give up an average of 109 hours a month, or about 3.6 hours a day. Nearly three-quarters of financial caregivers also hold jobs, and 46% support children at the same time.
“Caregiving often becomes a financial responsibility before families have fully discussed what support may be needed or who will provide it,” said Ken Cella, principal and head of external affairs at Edward Jones.
Only a third of caregivers said the role was planned and discussed in advance, and just 22% felt extremely prepared when it began.
Nearly half of financial caregivers, 49%, report making personal financial sacrifices. Within that group:
Careers suffer too: Among those making sacrifices, 24% took unpaid leave, 22% passed up a career opportunity or promotion and 19% stopped working entirely. Younger caregivers are hit harder, as the survey found 58% of those under 40 report financial sacrifices, compared with 32% of those 60 and older.
Women also carry an outsized load, reporting an average of 118 hours of caregiving per month compared to 98 for men. They're also more likely to have stopped or cut back on saving (42% vs. 35% of men), and report less confidence about funding retirement and long-term care (71% vs. 84% of men).
Some 72% of financial caregivers said caregiving is more stressful than they expected, 56% feel overwhelmed and 43% say it has hurt their own health. Caregivers to younger adults with disabilities report heavier strain, as 63% say caregiving has harmed their health, compared with 43% of those caring for older adults.
Still, 85% of financial caregivers said the role gives them a sense of purpose.
“Caregiving is filled with contradictions. It can be stressful, expensive, and overwhelming, while also being one of the most meaningful roles a person takes on,” said Ken Dychtwald, chief executive of Age Wave.
Other research by Aeroflow Urology points the same way. In a survey of more than 1,100 family caregivers this year, it found 77% feel financially overwhelmed, and more than half had cut their work hours, while 11% had to quit their jobs to provide care. According to one estimate by AARP, the total economic cost of unpaid caregiving has ballooned past $1 trillion annually.
More than four in 10 people in that situation also pointed to isolation as their single greatest source of emotional strain. Nearly three-quarters of family caregivers have to balance the burden of unpaid care with outside employment for more than five years, the Aeroflow Urology report found.
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