If you are nearing retirement, there’s a good chance you are part of what is known as the “Sandwich Generation.” This means you are still taking care of children, even if they are launching, while you are also taking care of aging parents.
Both Can Sap Your Retirement Savings
There are a few ways to make children less expensive, but for aging parents, there are some tools available to you. And make no mistake, aging parents can diminish your income from time away from work to added expenses that you must cover. But if you are giving care to an aging parent, the good news is you can get paid for doing it. Here are the programs that can help.
Medicaid Self-Directed Care Programs
If your parent qualifies for Medicaid, some states offer programs that allow recipients to choose their own caregivers, including family members. These are typically called self-directed or consumer-directed services. Under these programs, you can be officially recognized as your parents’ paid caregiver. The rules and payment rates vary by state, so it’s important to contact your state’s Medicaid office for eligibility and application details.
Veterans’ Benefits for Family Caregivers
If your parent is a military veteran, they may be eligible for programs offered by the Department of Veterans Affairs (VA). One such program is the VA’s Aid and Attendance benefit, which provides monthly payments that can be used toward home care. Another is the Program of Comprehensive Assistance for Family Caregivers (PCAFC), which offers stipends, training, and support services to qualifying family members providing care.
State and Local Support Programs
Some states, including California, New York, New Jersey, Illinois, Florida, and Washington, offer cash assistance to caregivers through their aging or social services departments. These may be structured as caregiver support programs or financial aid for low-income seniors who want to remain at home. Eligibility often depends on income, care needs, and whether the caregiver lives in the same home.
Long-Term Care Insurance Policies
If your parent has a long-term care insurance policy, check to see if it includes provisions for family caregivers. Some policies allow for payments to relatives providing care at home, although they may require that the caregiver be licensed or that certain conditions be met. This is worth reviewing carefully with the insurance provider or a financial advisor familiar with elder care policies.
Paid Caregiving Through Employment
The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave to care for a seriously ill parent without fear of losing their job. In addition to the federal FMLA, many states offer their own paid family leave programs, which go a step further by providing partial wage replacement during your caregiving leave.
More than a dozen states, including California, New York, Massachusetts, Connecticut, and Washington, have such laws in place. These programs are typically funded through payroll taxes and are available to eligible workers.
Caring for an aging parent is hard enough. But it doesn’t need to sap your savings and income as well.