Retirement Planning Includes Cost of Caring for Aging Parents
Over the past 15 years, the percentage of adult children providing personal care and financial assistance to a parent has more than tripled.
A quarter of adult children, mainly baby boomers, are caring for their parents, according to the MetLife study “Care giving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents.” The data showed that the 10 million employed caregivers in the U.S. lose an estimated $3 trillion in wages, pensions and Social Security benefits over a lifetime if they leave the workforce prematurely. The average losses are $304,000 per person.
Some other findings from the study revealed that for women, the total individual amount of lost wages due to leaving the labor force early because of care giving responsibilities equals $142,693. The estimated impact of care giving on lost Social Security benefits is $131,351.
MetLife said a very conservative estimated impact on pensions is approximately $50,000.