INVEST IN WOMEN | WOMEN IN PLANNING
neither family anticipated the costs of traveling to see each other . On a visit , shortly after her dad ’ s death , it was clear the house was too much for her mother to handle . Lisa talked her into moving back to their home state . Since buying was cost prohibitive , Lisa and Jeff converted their basement into an apartment for her mother .
The Real ‘ Costs ’ Of Caregiving Lisa ’ s laborious experience is increasingly common . The National Alliance for Caregiving has come up with some unsettling figures :
• The alliance says 19 % of Americans provide unpaid care to an adult , and 24 % of caregivers look after more than one person .
• Caregiving affects more women than men . Sixty-one percent of woman say it affects them while only 39 % of men do .
• The need for caregivers cuts across the wealth management and demographic groups among your clients , with boomers , Gen Xers and millennials all being called upon for unpaid care .
• It ’ s also expensive to care for others . Forty-five percent of unpaid caregivers experience at least one financial impact : meaning they must stop saving , deplete their emergency funds or take on debt .
• Their work is also affected when they take on care for others . Sixty-one percent of unpaid caregivers have also experienced at least one work-related shock , meaning they have to reduce hours or pass up on a promotion .
• Caregivers ’ own health is on the line , too . Twenty-three percent of caregivers say their efforts have made their health worse . If health is wealth , unpaid caregivers face additional threats to their social , emotional and physical well-being in the forms of increased healthcare costs , higher premiums , reduced retirement savings and the depletion of wealth .
A When , Not An If
For many of us , like Lisa , caregiving is a role we ’ ll take on repeatedly over the course of our lives .
So what can advisors do to prepare and protect their clients — and their books ?
• Understand who might depend on your clients . This could include older loved ones , children , spouses , extended family , pets , even friends . Your clients ’ plans are only as solid as the least prepared person in their circle .
• Get to know the people they might depend on , too . While we all hope to live happily , healthfully and independently , life happens . Do you know whom your clients would call from the ER ? Have you met their trusted contacts ?
Shortly after her dad ’ s death , it was clear the house was too much for her mother to handle .
• Ask about key documents . Do your clients have current and complete powers of attorney , living wills , healthcare proxies , wills , etc .? Do the people named know they are ?
• Monitor your clients ’ life events . When people move , change jobs or experience a serious change in their health , these things rarely occur in a vacuum . Consider asking your clients this simple question : “ What ’ s changed in your life since we last talked ?”
• Get to know their family health history . What conditions are in your clients ’ family trees ? How long have older relatives lived ? How well ? When you unpack their health issues , you can build new relationships and deepen existing ones by addressing a key financial stressor .
• Raise the subject of workplace benefits whenever it ’ s appropriate . Do your clients have access to caregiving support services at work , including emergency / backup care , eldercare or ( increasingly ) paid caregiving concierge services ? Be aware that many of these workplace benefits , including most financial well-being programs , come with access to advisors .
If you don ’ t raise these issues with clients and their families , someone else will .
SUZANNE SCHMITT is a managing director at Next Chapter . Before that she served as head of financial wellness at New York Life .
34 | FINANCIAL ADVISOR MAGAZINE | MARCH 2024 WWW . FA-MAG . COM