Families woefully underestimate costs of escalating senior care
Most families have no idea of the true costs of nursing homes or home care, according to a recent survey from Waltham, Mass.-based Care.com.
Of nearly 500 respondents, some 60 to 70 percent underestimated both costs, while more than one in four thought nursing homes cost half of what they do.
Meanwhile, 29 percent of respondents already financially support a parent or aging loved one, while most struggle with talking openly about care needs with their aging parents and haven’t saved for their own senior care.
“Nearly half of U.S. adults in their 40s and 50s are already in the Sandwich Generation caring for a child and an aging parent,” said Jody Gast friend, vice president of Senior Care at Care.com. “And with the number of people over the age of 65 set to nearly double by 2050, the emotional and financial weight of senior care is only going to intensify for families,” she said.
“Raising awareness of the true costs of senior care is imperative for the financial health of families,” Gast friend said. “When you add in the cost of child care and saving for retirement, the financial impact can be profound,” she said.
National annualized nursing home average costs range from $82,125 to $92,378, while the costs for nonmedical home care range from $45,760 to $46,332 for 44 hours per week, based on data from Genworth.
Medicare does not cover the cost of nursing homes.
Parental support
Among the Care survey respondents, one in three said they already provide $5,000 or more in parental support. Nineteen percent provide $10,000 or more per year, while 66 percent provide $1,000 or more.
Adult children would rather discuss sex with their kids than take away keys from aging parents, surveyors found. Fifty-two percent haven’t discussed senior care issues with their parents. Twenty percent cited their own discomfort, while 15 percent feared their loved one would react defensively.
Fifty-five percent don’t plan to talk about senior care until there’s a need. Those who had discussions said they were precipitated by a major medical incident, such as a bad fall or heart attack.
“By talking about preferences and expectations before the need arises, families are in a better place to make informed decisions for the care of a loved one,” Gastfriend said.
“Whether it’s consulting professionals to help explain your options, or researching information online, there are myriad resources available to help families navigate this sensitive, and oftentimes confusing, topic,” she said.
Once adult children start the conversation, they ultimately feel informed, hopeful and relieved, surveyors found. Sixty percent said their parents did not react defensively.
Michael Marty, senior vice president and general manager of Care@Work said employers should recognize the need for workplace benefits like senior care advisory services or high-quality, urgent care for adults and children.
“With today’s modern workforce consisting of two working parents who are caring for their own children and their aging parent, such benefits not only support the well-being of employees and their families, but also help employers increase loyalty, reduce turnover costs, and drive productivity,” Marty said.