Families across the U.S. are stepping up to care for their loved ones. This estimates $600 billion in unpaid care every year!
However, Surya Kolluri, head of the TIAA Institute states that the demand for caregivers will skyrocket in the coming year. This could have far reaching consequences for individuals, families and employers.
What is the solution to this? Let’s examine the challenges caregivers face, identify the surge in demand, and consider what can be done about it.
The Current State of Caregiving in the U.S.
According to The Wall Street Journal, more than 4 million baby boomers will turn 65 in 2025. This phenomenon is also known as “Peak 65”.
This is one of the largest waves of Americans reaching the retirement age in U.S. history—a trend to continue till 2027. Along with it, people are now living longer, with life expectancy increased by 17 years since Social Security began.
This longevity is good news, but it comes with several consequences. The demand for unpaid therapy is already a $600 billion annual effort. Aging Americans will increase this number.
The Challenges Faced by Caregivers
The current situation is raising issues among the caregivers. They include time and financial strain, work-related consequences, and more.
- Financial Strain
Unpaid caregiving can be hefty, as on average it costs around $7,200 every year. Thus, caregivers often have lower savings and higher debts than non-givers with less than $1,000 in savings. - Time Demands
Caregivers often give an average of 24 hours every week to unpaid care. Additionally, 60% are also working jobs outside their homes. This balancing often takes a toll on them. - Work-Related Consequences
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Caregiving also impacts work, with 61% of caregivers often arriving late and leaving early to meet caregiving demands regularly. Some even retire early to meet their caregiving demands. - Disparities in Gender and Age
The burden is often not evenly shared. For example, women make up 60% of caregivers, and 25% are millennials. Several millennials face responsibilities like raising children, while caring for aging family members, often heightening emotional and financial stress.
The Importance of Planning for Caregiving
Observing the above challenges, Surya Kolluri states that caregiving requires intense planning, now more than ever. This planning includes proactive financial planning, and having the necessary conversations.
Proactive Financial Planning
As Kolluri puts it, multiple families consider caregiving only once it’s a “hair-on-fire” moment. This outlook needs to be addressed! These families must start including caregiving in their regular financial discussions and consider potential caregiving needs.
Having the Tough Conversations
Talking about caregiving roles can be taxing, even for people like Surya Kolluri. However, these discussions are essential. Starting the dialogues early makes all the difference— whether it’s about emotional responsibilities or financial and logistical planning.
How Employers Can Help
Caregiving responsibilities equally impact families and workplaces. Productivity can suffer due to these and hence, employers too, play a crucial role in easing the burden.
Here are a few ways employers can help:
- Offer Flexibility: Most unpaid caregivers have a full-time career going on apart from their caregiving roles. Therefore, flexible timings are one of the primary things employers should consider if they want to retain their employees. It will help the caregiver to do their duty and work in their own time.
- Train Frontline Managers: Frontline managers deal with employees one-to-one. So, employers can empower these individuals to support employees with intense caregiving responsibilities. It will help the managers in understanding the unpaid caregivers’ situation and thus, offer better support.
- Provide Tools and Resources: Tools like caregiver intensity index measures the efforts and demands that caregiving involves. Leveraging assessments from the index can help employers to understand the strain a caregiver is going through. Hence, easing the burden of the unpaid caregiver.
Taking these initiatives can benefit both unpaid caregivers and employers. The employers can retain employees who are well-adapted to the company’s culture. Similarly, employees will have the opportunity to work on their own time and do their best.
Closing Thoughts
The rising need for unpaid caregivers is a call to action for families and employers. Therefore, planning ahead and fostering open communication will act as a critical step to overcome these challenges. Employers’ support can also assist the unpaid caregivers in balancing their jobs, caring for their family members, and excelling at their workplaces.