Helping Caregivers Manage Financial Stress

Dealing with employee burnout and Covid-19 stress on caregivers

According to AARP, more than one in five Americans (21.3%) are caregivers, and 61% of them work outside of the home — while also having growing caregiving responsibilities. Twenty-four percent care for two or more adults.
 
Those are sobering statistics.

Here’s another one: 11 million Americans — 28% of all caregivers — are “Sandwich Caregivers,” those who provide unpaid care to an adult while also caring for children living in their home.  

The ongoing pandemic has amplified caregiver concerns and has increased levels of stress, fear, and isolation. Thirty-seven percent of caregivers say Covid-19 has had a severe impact on daily life. One in five reports an increased difficulty meeting financial needs related to providing special care for their family members, due to the pandemic.

Caregiving is often chaotic and stressful. However, this is not a unique experience. But there are specific steps that can help reduce stress and financial strain. Here are three actions caregivers can take to help manage their emotions and finances.

Many employers offer counseling and well-being apps at a reduced rate — or for free. If the financial stress of caregiving is making it hard to focus, sleep or causes a feeling of exhaustion, don’t wait until the emotions are overwhelming. Also helpful, many employers provide caregiving solution services, such as backup care, at discounted rates.

Health Savings Accounts (HSAs) and Healthcare Flexible Spending Accounts (FSAs) also can be used to pay for therapies. Check with the service provider to ensure these are qualified expenses, and get a letter of medical necessity from the provider. Many people think Dependent Care FSAs can be used for only childcare — but they can be used for other family care, including aging parents.

Taking this step may seem like a daunting undertaking, especially while also trying to navigate the health, safety and financial fallout of a pandemic. Many caregivers don’t feel they have the resources or time to develop a future plan.  
 
Experienced disability and special needs planning financial professionals are skilled at knowing how to maximize employee and government benefits programs that may not be well-known or widely understood. These professionals can help create plans that restructure current financial obligations.  

Although many families don’t discuss financial and future care planning, this topic should be addressed, especially for families with an aging family member or one with a disability or special needs.

The ideal venue for these financial discussions is a family meeting, which can result in caregivers getting some respite and support. Planning a family meeting may not be on the top of the busy caregiver’s to-do list, but taking some simple steps can help ensure a smooth process.
 
Begin with determining the attendees. Be sure to include the people who are, or maybe, involved in future care. Then reach out to family members who will attend for their suggested input and put together an agenda or a list of topics. Send it out in advance to encourage people to come prepared to discuss the important items.  

The next step is to prepare to lead the meeting. While sending out the agenda in advance can help attendees get ready, there may be hesitation to address some topics. Let attendees know that all of their opinions and emotions will be acknowledged and respected. Hopefully, at the end of your family meeting, the discussion has led to some decisions. Be sure to communicate the next steps to all who are involved.

As necessary, schedule follow-up family meetings and topics of discussion, as plans will need to be updated and changed as the family’s situation changes.

The societal and cultural shifts caused by the pandemic have prompted an increased focus on the often-overlooked needs of caregivers. Taking advantage of the assistance that employers, experienced professionals, and families can provide is a step in the right direction.

Products and services are offered through the Voya® family of companies. This material is provided for general and educational purposes only. Neither Voya ® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.