The bipartisan kindness of caregiving

Could anything be more bipartisan than encouraging and supporting those providing care for loved ones? We all understand that caring for our aging parents or other elders is a profound act of love, devotion and responsibility. Caregiving underpins our humanity at a fundamental level. It is noble and rightfully appreciated.

Yet, caregiving requires sacrifices, often significant ones. It can impact caregivers’ job performance, employment opportunities, emotional well-being and financial health. The National Endowment for Financial Education found that adults who care for their parents or other adults spend an average of $889 per month on caregiving expenses. This has resulted in 73% of these family caregivers incurring credit card or personal debt, delaying their own major life events, prematurely withdrawing money from retirement accounts, delaying retirement, returning to work or taking other impactful actions they otherwise would not have to provide caregiving.

This is one area where sharply divided politicians can put aside ideological differences and together make a real difference. Rep. Mike Carey, R-Ohio, and Rep. Linda Sánchez, D-Calif.,  along with Sen. Shelley Moore Capito, R-W.Va., and Sen. Michael Bennet, D-Colo., reintroduced the Credit for Caring Act (H.R. 2036 & S. 925), bipartisan legislation that would create a new tax credit of up to $5,000 for working family caregivers.

The Lowering Costs for Caregivers Act (S. 1565 & HR 138), introduced by Sen. Bill Cassidy, R-La., Sen. Jacky Rosen, D-Nev., Rep. Vern Buchanan, R-Fla., and Rep. Mike Thompson, D-Calif., would allow caregivers to use their individual tax-free health savings accounts and flexible spending accounts to pay medical expenses of their parents and other loved ones.

The two bills would provide much-needed financial relief to family caregivers and would partially offset the high out-of-pocket costs they incur each year on home modifications, health care, adult day care, medicines, transportation and other support services. The maximum $5,000 tax credit and tax advantages of HSAs and FSAs can facilitate proactive financial planning and help alleviate the financial burden that caregivers face each day.

"Caregiving isn’t just a personal challenge — it’s a financial one as well," said Carroll Golden, executive director of the National Association of Insurance and Financial Advisors’ Lifetime Healthcare Center. "Advisors are deeply involved in helping clients prepare for the unexpected, and they’ve witnessed firsthand how caregiving expenses can derail even the most carefully crafted financial plans."

Golden also pointed out a personal connection: many financial professionals are caregivers themselves. "They’re managing their own responsibilities while also supporting family members," she said. "That’s why NAIFA strongly supports federal initiatives like the Credit for Caring Act and the Lowering Costs for Caregivers Act. A $5,000 tax credit could provide meaningful relief to families bearing the weight of caregiving."

Caregiving as an issue has real momentum now. Economic uncertainty has many Americans focused on their family finances. “Caregiving,” a PBS documentary series by executive producer Bradley Cooper, is taking millions of viewers into the lives of both paid and unpaid caregivers. Their personal stories illustrate the challenges they face, including financial hardships. These are stories millions of Americans will find relatable.

As caregiving makes its way into the headlines and popular culture, the United States remains an aging nation with 11,000 Americans turning 65 every day. The need for caregiving is not going away and its financial impact continues to mount. If ever there was a time for us to amplify our encouragement and support of caregivers, that time is now.

 

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