The Cost of Caregiving
Our population is aging rapidly and the caregiver support ratio is declining sharply, which means a lot less family support will be available for people in high-risk years for needing care, and family caregivers will be more likely to be providing care for multiple loved ones at a time.
70% of us will need long-term care at some point in our lives. The problem is long-term care can be really expensive. Even though long-term care is a predictable cost, most of us don’t have a way to pay for it. The median household income for seniors in Washington is $56,000 per year. 41% of Washington workers near retirement have no projected retirement income from a pension, 401(k) or IRA and another 42% have only enough savings to replace 10% of their pre-retirement income.
Caregiving can not only take a physical and emotional toll, but also a financial one. Caregivers spend on average 25% of their own income on care-related expenses. A study by AARP shows just how much housing, home modifications, medical expenses and other costs can add up — and disproportionately hurt those who can least afford it. According to the study:
- 78% of family caregivers report having out-of-pocket expenses as a result of caregiving.
- On average, family caregivers spend a quarter of their own income on care-related expenses.
- Nearly half of caregivers have experienced at least one financial setback as a result of caregiving, like dipping into personal savings, cutting back on their own spending, or reducing how much they save for their own retirement.
- Caregivers of color experience higher financial strain.
Your WA Cares benefit, which starts at $36,500 and grows over time with inflation, can be used on any combination of covered services.
But how much does that cover? For about a third of people, who need care for a year or less, this amount could cover all the care they need in a lifetime depending on what services and supports they choose to receive.
For everyone else, it will provide immediate relief from long-term care costs without the need to spend down their savings and give the family time to plan for future needs. People who have private long-term care insurance can use their WA Cares benefit to cover the waiting period instead of paying out of pocket. Learn more about how far the benefit goes.
If you have a family member who helps you out regularly, you may be able to make them your paid caregiver, which can help relieve some of the financial burden of caregiving. They can also get respite care, training or support.
Find more information and resources for family caregivers.