As the number of older adults continues to increase, so does the financial burden associated with their care.
Many millennials and Gen
According to a Business Insider According to this story, this growing financial gap is forcing younger generations to take on more responsibility for caring for their loved ones, creating ripple effects that can impact their present and future financial well-being.
One example is Singaporean business owner Delane Lim, 38, who supports his parents financially by contributing a few thousand dollars a month.
In an article published by THE Straits Times (ST)Lim said he covers the salaries of two domestic helpers to care for his 65-year-old mother, who has dementia, and gives his parents $1,600 for their monthly expenses.
According to an online survey of 1,000 people by STthree out of four respondents said they regularly give money to their parents.
Of those who provide support, almost half contribute an average of $300 to $500 per month. Additionally, about half of those surveyed said they donate between 10 and 20 percent of their salary.
According to the Best Religious Caregiver website, the cost of hiring a live-in caregiver in Singapore generally ranges from S$600 to S$1,200 per month.
This amount generally covers room, board and lodging, as well as the caregiver’s salary and benefits. High-end care services may be more expensive, while more basic options might be more affordable.
The pressure of caregiving on younger generations
A significant number of millennials and Gen
This “sandwich generation” is often forced to quit their jobs or reduce their working hours to care for elderly family members. This sacrifice, although out of love and necessity, has financial consequences.
Ms Melinda Ong, Assistant Vice President of Financial Services at Manulife Advisory Group, said in an interview with THE Straits Times that for “the sandwich generation, managing dual financial responsibilities can be a difficult and stressful balancing act.
Expenses range from everyday costs like groceries and transportation to medical bills and long-term care.
Experts warn that this cycle of care can create a form of generational poverty. Marc Cohen, professor of gerontology, explains that financial pressure isn’t just felt by a single generation: it’s a community problem that affects everyone involved.
As care costs continue to rise due to inflation and worker shortages, the challenge becomes even more daunting, especially for middle-class families.
The Limits of Government Assistance and the Need for Policy Change
For many families, relying on government programs like Medicare is not a viable solution.
Although Medicare helps cover some health care costs, it does not cover most long-term care services such as assisted living, home care, or nursing homes.
Medicaid, on the other hand, offers limited coverage and eligibility can be difficult to determine.
Additionally, waiting lists for Medicaid services can be long, and even when families qualify, they risk being kicked out of assisted living facilities if their savings run out.
This scenario is becoming more and more common. As older generations require more care, it is clear that government programs are not enough to meet this growing need.
Experts like Marc Cohen say there is a clear “market failure” in the private long-term care insurance sector and that policymakers must step in to create a public option to serve middle-income families.
Is a solution on the horizon?
As the financial burden of long-term care continues to grow, some policymakers are beginning to explore solutions.
For example, Washington state recently implemented a payroll tax to fund a new long-term care insurance program intended to provide care to people in need. This model could serve as a model for other states and national programs.
In Singapore, there is Silver Support Programwhich provides additional assistance to older Singaporeans who had low incomes during their working years and now face reduced financial resources in retirement.
Cohen advocates for a national public insurance option for long-term care that would operate similarly to Social Security and Medicare, funded by mandatory taxes throughout one’s working life, with benefits collected in retirement.
This would help ease financial pressure on families and ensure more people can access affordable care when needed.
As the population ages, the call for comprehensive and affordable solutions will only grow, clearly demonstrating that policy change is desirable and essential.
