As the baby boomers advance in age, their adult children are often stepping in to help with caregiving duties — and that comes with costs.
According to a recent study from money managers Fidelity Investments, 62% of caregivers report being occasionally overwhelmed with financial stress.
Look at the numbers, and it is not hard to see why: Of those who stepped back from their careers to focus on caregiving — whether for one's kids or for one's elderly parents — the average time out of the workforce was 20 months, and 53% said the period turned out to be longer than expected.
Meanwhile, 37% said they earned less when they returned to work, taking a median 40% pay cut.
"People don't fully understand the toll this takes on other aspects of your life, like your career or your mental health," says Meredith Stoddard, Fidelity's vice president of life events planning. "They go in largely unprepared for the challenges and are not sure what they're getting into."
Of course, because it is family, it is still a choice that most people would make. Making sure your elderly parents are OK trumps any financial worries, as it did with Steele.
Caregivers should be clear-eyed about the sacrifice involved and have a road map going in. Some advice from the experts:
"Make sure you are maximizing any benefits they are eligible for," says Amy Goyer, AARP's family and caregiving expert and author of "Juggling Life, Work and Caregiving." That includes veteran's benefits, long-term care insurance and government services.
