The Economic Impact of Elder Caregiving: A Reflection on 2019 and Actions for 2020
During the last two months of 2019, I was conspicuously absent from this blog. I'm happy to report that the reason was an extremely busy work schedule – no caregiving emergencies. I'm a self-employed business writer and when work is available, I try to take as much as I can…The flexibility is great, but it's also a double-edged sword.
Starting in 2012, as my Dad dealt with his worsening dementia, I was able to adjust my workload and work schedule to focus on caregiving – that ranged from bringing him to doctor's appointments and advocating for him to filling weekly pill boxes, managing finances, maintaining my parents' home, and more. My chosen career enabled me to spend much more time with my Dad than if I'd had a corporate job.
On the downside, that flexibility combined with the prioritization that I gave to caregiving translated into years of lower earnings. My Dad passed away in the spring of 2018, so 2019 was the first year in a long while that I worked without wearing the caregiving mantle. My "focus group of one" revealed that my revenues increased by over 25% between 2018 and 2019. The dramatic reduction in caregiving hours after my father's death contributed significantly to that increase.
The economic impact of elder caregiving is a critical issue across the United States:
The work-related opportunity costs of elder caregiving are high. The AARP Public Policy Institute has estimated that in 2013, the economic value of services provided by "informal" (i.e., unpaid) caregivers was $470 billion. On average, caregivers in the 45 to 54-year old range provide 25.8 hours of care per week. Researcher Courtney Van Houtyen and her colleagues have estimated that women between the ages of 51 and 70 work three to ten hours less per week when providing unpaid care to family members.
Significant amounts of unpaid care are associated with cognitive diseases. The Alzheimer's Association estimated that in 2014, the economic value of care provided by unpaid caregivers for Alzheimer's and dementia sufferers was $217.7 billion. Diseases that affect cognitive functioning take a tremendous toll on caregivers in terms of time and emotional impact.
The economic challenges associated with unpaid caregiving are likely to get bigger. A recent research paper, Work-Related Opportunity Costs of Providing Unpaid Family Care in 2013 and 2050, suggests that over the next 50 years, the number of older Americans with disabilities will increase 2.5 times. Yet, the number of potential caregivers is not projected to increase at the same rate. As a result, significantly more working-age Americans will be providing care to elderly relatives in the coming decades. "Care-related forgone earnings" are likely to increase significantly, while opportunities for promotions and job security may decrease.
A Federal Response to the Family Caregiving Crisis
In January 2018, the federal government signed the Recognize, Assist, Include, Support, And Engage (RAISE) Family Caregivers Act into law. The objective of this legislation is to create a national family caregiving agenda, as well as to enhance coordination across government programs supporting caregivers and care recipients.
The RAISE Family Caregiving Advisory Council convened its first meeting in August 2019. The council's mission is to develop recommendations related to the federal government's strategy to support unpaid caregivers. This group of 30 individuals is divided into two groups – a team of 15 voting members and a team of 15 advisory members. The Council members represents caregivers, employers, older adults, individuals with disabilities, healthcare providers, providers of long-term care services, state and local officials, and veterans.
Elder caregivers have a unique opportunity to make their voices heard about the challenges they face. The RAISE Family Caregiving Advisory Council is soliciting public input online until Friday, February 7, 2020.
Go to this online form and provide your thoughts on two key questions:
What is one pressing family caregiving need or concern that you would like to see addressed?
What is a specific recommendation that you would offer to address this need or concern?
Looking Ahead…
One of my 2020 resolutions is to resume regular posts here. Topics I'm considering for the new year include driver assessment companies that evaluate seniors' driving skills, transportation services that can help when a family member can no longer drive, continuum of care facilities, "age friendly" architecture in public buildings, and more. Let me know if there are topics you want to talk about this year.