A sign of our demographic times: The number of U.S. workers providing care to older adults (almost 23 million) is greater than the number taking care of preschool children (21 million).
That’s according to the Harvard Business Review article “Your Company Needs an Eldercare Policy,” by aging experts Ken Dychtwald, Terry Fulmer, Robert Morison and Katy Terveer.
The Bureau of Labor Statistics calculates that nearly half of all elder caregivers are between the ages of 45 to 64. These are the years when employees earn the most, wages that boost future Social Security benefits and retirement savings. Yet because of caregiving responsibilities, employees often turn down promotions, shift to part-time work and take other actions that jeopardize their long-term financial security.
Care for older adults typically means assisting with everyday tasks, like bathing, dressing, cooking meals and light housekeeping. Unlike other wealthy nations, the U.S. hasn’t built a national care system. For instance, long-term care insurance is mandatory in Japan for citizens 40 years and older. The Netherlands includes long-term care in its national health care system.
Medicare doesn’t cover most long-term care expenses. Medicaid is the public option, but qualifying requires impoverishment. Professional caregivers are invaluable, but the cost of paid caregiving is out of reach for many families. The same holds for long-term care insurance premiums.
The U.S. relies on families to step into the breach, unpaid. The Harvard Business Review authors rightly responded to the current reality by calling for employers to aggressively expand their caregiving benefits.
“Child care support has become essential to employee productivity, retention, engagement and wellbeing,” they wrote. “The massive demographic shift that we are now living through makes elder care support just as essential to talent strategy and organizational performance.”
Meanwhile, most employees should anticipate they will need to take care of aging loved ones at some point. Plan ahead. Learn about employer benefits (if your employer offers caregiving help).