By Carl Zacharia
In 2025, caregiving continues to present an essential public health issue in the U.S. as our population ages and chronic disease prevalence increases.
Family caregivers are providing indispensable support that allows individuals to remain in their homes and communities, however their contributions often go unrecognized — and unpaid.
With family caregiving on the rise, there is growing recognition among voters, policymakers, and employers about the significant challenges posed by caregiving and the need for solutions.
Two recently introduced bills and a proposed tax credit for caregivers would make it easier for family caregivers to save for retirement.
The $600 Billion Caregiver Crisis
Terms like “complex,” “inefficient,” “unfair,” and “broken” are often used to describe the United States health care system. The U.S. spends more per capita on health care than other developed nations; but despite this, higher spending often does not achieve better outcomes.
The long-term care gap in this country’s health care system is one of its most glaring shortcomings. The U.S. doesn’t have a national program to help cover long-term care costs, leaving many families to shoulder the burden and expenses associated with caring for family and loved ones who need assistance with activities of daily living.
These “free” caregiver services come at a high cost. According to an AARP report, family caregivers contributed 36 billion hours of unpaid care per year in 2021 valued at $600 billion. This figure is a $130 billion increase since a similar report in 2019.
One in five Americans — more than 53 million adult Americans — are now unpaid family caregivers. That number increased by 9.5 million adults from 2015 to 2020 and AARP projects that by 2034, adults aged 65 and older, will outnumber children younger than 18 for the first time.
Caregivers, on average, spend more than $7,200 per year out-of-pocket and 26 hours per week to care for loved ones. Many also face the dual demands of employment and caregiving, which often includes caring for growing children and aging parents, leading to the term “sandwich generation.”
Women are still disproportionately likely to provide unpaid care while working full or part time, although more working men are becoming caregivers. Others are forced to step away from work temporarily or altogether to keep up with caregiving, limiting their career growth, job opportunities, and retirement savings.
Voters, Politicians, and Organizations Back More Caregiver Resources
Demographic and economic trends are creating a situation for family caregivers that is unsustainable. Working-age Americans are increasingly forced to choose between their own well-being and the well-being of loved ones. However, more support could be on the way.
Two bipartisan bills — the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act — were introduced in September.
The former would eliminate the income cap on Roth IRA contributions and allow family caregivers to contribute up to $7,000 annually toward their retirement savings, while the latter would allow family caregivers to make catch-up contributions to employer-sponsored retirement plans, an option typically reserved for those older than 50.
The National Strategy to Support Family Caregivers plan, launched in 2022, outlines hundreds of specific actions to address the physical, emotional, and financial needs of family caregivers. This past September, the Department of Health and Human Services (HHS) released a report stating that nearly all these actions have been completed or are in development.
Additionally, a June 2024 poll found that 86 percent of voters (92 percent of Democrats and 82 percent of Republicans) want policymakers to support caregiving and make it more affordable. More than 80 percent of respondents said that they supported paid family leave, caregiver tax credits, and employer incentives for caregivers.
To learn more about available financial benefits and support for family caregivers, please join Zacharia Brown Estate Planning and Elder Law at our upcoming complimentary events in Southwest Florida!
February 2025 Events!
Wednesday, February 5th at 6:00pm
Navigating Estate Planning with a Cancer Diagnosis – Webinar
Monday, February 10th at 12:00pm
Empowering Women: Securing Wealth and Safeguarding Your Legacy
Hyatt Regency, Sarasota, FL
Wednesday, February 12th at 11:30am
Domiciling in Florida: A Step-by-Step Guide to Becoming a Resident and Unlocking
Benefits of Homestead – Webinar
Tuesday, February 25th at 10:00am
Protect Your Wealth: Wills,
Trusts & Long-Term Care
Area Agency on Aging for SWFL,
Fort Myers, FL
Wednesday, February 26th at 3:00pm
Ask The Attorney: Estate Planning,
Elder Law & Probate
Sandalwood Village, Naples, FL
Register Today – Scan below or Call 239-345-4545!
Zacharia Brown Estate Planning and Elder Law
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