The importance of unpaid caregivers for older adults with Alzheimer’s or another form of dementia is well known in the senior living industry, and a new study calculates that if such caregivers earned a salary, their work would be worth a six-figure annual income.
Unpaid caregivers such as family and friends, if compensated, would earn more than $114,000 annually, according to the study conducted by Salary.com and sponsored by Otsuka America Pharmaceutical.
“This timely research documents the financial impact of family caregiving on a critical segment of our population who serve as the primary support system for their loved ones,” said Debra Barrett, vice president of corporate affairs for Otsuka. “We need to re-envision healthcare and social support networks to safeguard the well-being of family caregivers and the loved ones they tirelessly serve.”
An additional 9.5 million unpaid caregivers began caring for loved ones in the last five years, bringing the total to more than 53 million caregivers, according to the study.
It’s also common for caregivers to experience significant financial strain, losing out on wages and retirement benefits. That loss has been estimated to be between $303,000 and $659,000 in wages and retirement savings due to their caregiving roles.
The study also found that women who leave the workforce early for caregiving duties could lose an average of $131,351 in Social Security benefits over their lifetime.
Aside from losing financial standing, caregivers also report high levels of emotional and physical stress, which can cause burnout and impact their quality of life.
Common caregiving roles can span the responsibilities of 12 “distinct jobs,” ranging from household chores to complex nursing and financial counseling. But these responsibilities don’t end like a typical day job, with caregivers often working overtime and weekends.
The social contribution from family caregivers of people living with Alzheimer’s disease and other forms of dementia is estimated to be around $350 billion, according to Azheimer’s Association figures cited in the press release announcing the study findings.
“Much of the conversation around the economic value of unpaid family caregivers of those living with Alzheimer’s or other dementias provides the big picture view, and while critical to understanding the landscape, it doesn’t depict the immense loss and burden on individual caregivers,” said Greg Wolf, managing director, Salary.com.
Given this context, it’s important to note the increasing demographic shifts happening nationwide as the number of older adults rises, which could strain the U.S. healthcare system.
There are signs that the federal government recognizes the need to better support family caregivers. For example, the Centers for Medicare and Medicaid Services drafted the Guiding an Improved Dementia Experience (GUIDE) model, which includes caregiver resources and a new payment method to incentivize healthcare-facing companies to enroll in the program.
Memory Care Business has highlighted the growing number of GUIDE participants within the senior living space and will continue to follow this key program in the years to come.
