Lara Hinz, M.S.W., Director of ProgramsWomen’s Institute for a Secure Retirement

Presented to: National Network of CoalitionsTuesday, December 16, 2014

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Today’s Speaker

Lara Hinz, M.S.W.Director of Programs

Lara Hinz oversees WISER’s national outreach and partnership activities, which focus on providing low-to moderate-income women with the financial tools and information they need to develop long-term financial security. Prior to WISER, Ms. Hinz worked at the Institute for Women’s Policy. In 2012, she was inducted into the National Academy of Social Insurance.

WISER/ NATIONAL RESOURCE CENTER

ON WOMEN & RETIREMENT PLANNING

Operate with the Administration on Aging

One-stop gateway to provide basic financial information and resources

Focus is on financial planning, retirement readiness, health and long-term planning Topics: Saving & Investing, Social Security, Retirement Planning, Divorce, Widowhood, and Financial Fraud & Abuse

www.wiserwomen.org4

TODAY’S WORKSHOP

Caregiving and its Financial Impact

Step 1: Getting Started

Step 2: Leaving a Job or Working Part Time

Step 3: Creating a Household Budget

Step 4: Saving for Retirement

Step 5: Financial Help for Older Adults

Step 6: Legal and Financial Documents

Step 7: Elder Financial Fraud & Abuse

Step 8 End-of-Life Planning

Wrap-up and Q&A 5

WHO ARE THE CAREGIVERS?

66 million people in U.S. provide unpaid care to relative or friend

26.5 million are working and providing care to an older adult

Women still primary caregivers

Nearly 50% spend more than 8 hours each week providing care – 12% spend more than 40 hours each week. 6

WHO ARE THE CAREGIVERS?

Not a caregiver currently? There is a very good

chance you will be at some point in your life.

Becoming a caregiver can happen at any time,

but often comes as you are nearing retirement.

Even if you feel financially prepared for your

own retirement, you may suddenly find yourself

unprepared to manage the costs of caregiving.

Need to take steps to avoid compromising your

own financial security.

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FINANCIAL IMPACT OF CAREGIVING

70% of caregivers report making adjustments in

work schedules.

Reduced wages and benefits result in missed

opportunities for compounded interest, matching

contributions, and less money saved and

invested.

Caregivers pay an estimated $5,531 annually in

out-of-pocket costs.

2011 study showed caregivers lost $303,880 in

wages, Social Security benefits, and private

pensions. 8

STEP 1: GETTING STARTED

Family Financial Planning

Talk with siblings and other family

members about actual costs

Hired services i.e. transportation, home health aides, or

visiting nurses?

Home modifications?

Day-to-day expenses?

If you will be providing most of the care, speak

up about what you need from others

Learn more about legal “personal care

agreements” for family caregivers9

PERSONAL CARE AGREEMENTS

Can be used for family and non-family caregivers

Formal contract – specifically states what care is to

be provided and how much caregiver will be

compensated

Compensation must be for future services (not

those already provided) and must be reasonable

For Medicaid purposes, can show that care

payments were legitimate and not an attempt to

“hide assets”

Additional resources: Naela.org and Family

Caregiver Alliance, caregiver.org

10

STEP 1: GETTING STARTED

(CONT.)

Think about your own future

Open an Individual Retirement Account (IRA)

to continue saving

Are there other resources you can access to

assist the person you are caring for?

Who will care for you later in life?

Do you have an long-term care insurance

policy?

11

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STEP 2: LEAVING A JOB OR WORKING

PART TIME

Exhaust all other options before leaving a

job or reducing hours. Talk to family members about getting more help.

Find other resources available—Eldercare Locator,

Eldercare.gov & Benefitscheckup.org

Even staying an extra year can make a big difference.

Consider your retirement vesting and

benefits schedule – can you work at least

until you are fully vested? Resist the

urge to cash out retirement benefits!13

STEP 2: LEAVING A JOB OR WORKING

PART TIME (CONT.)

What are your healthcare or insurance

options? Are there a minimum number of hours you can work

to still be eligible for your employer’s insurance?

Get estimates on what COBRA or other coverage

might be.

Know how Medicare and COBRA work.

Make a plan for managing your money

and continuing to save for retirement. Saving even a little will help. 14

STEP 3: CREATING A HOUSEHOLD BUDGET

Caregivers often pay for expenses for their care recipient without thinking of long-term consequences

A budget is essential! Especially if leaving work or reducing hours

Use a budget to decide how you may need to adjust your lifestyle or expenses to account for caregiving costs

Budget can also protect you or prevent family conflicts if you are managing your care recipient’s money 15

STEP 3: CREATING A HOUSEHOLD BUDGET

(CONT.)

Track your spending

Note all your expenses for a month

Put purchases into categories

Make a list of regular bills

Study credit card and bank statements

to ensure you account for everything

Compare expenses to income

Add all income and divide by 12

Subtract monthly expenses

If your income does not cover expenses, find ways to

cut back

Having categories in your budget can help with this 16

“MANAGING SOMEONE ELSE’S MONEY”

GUIDE BOOKS

Developed by the Consumer Financial Protection

Bureau (CFPB)

Helps financial caregivers carry out their duties

and responsibilities, and protect care recipient

from scams and fraud

4 Guides: agents under powers of attorney, court-

appointed guardians, trustees, and government

fiduciaries

Available online and can order free copies,

individually or in bulk

www.consumerfinance.gov/managing-someone-

elses-money 17

STEP 4: SAVING FOR YOUR OWN

RETIREMENT

Estimate your monthly retirement income

Social Security

Private or government pensions

IRA or 401(k)s

Calculate your net worth

Total assets: cash, home equity,

property, etc.

Calculate need in retirement

Experts recommend at least 85% of pre-tax income

WISER recommends 100% for women

Live longer

Additional health care expenses 18

STEP 4: SAVING FOR YOUR OWN

RETIREMENT (CONT.)

Calculate the gap between income and needs

Retirement Planning Calculators can help:

Longevity Calculators

Retirement Expenses Calculators

Retirement Income Calculators

WISER’s Lifetime Income Annuity Calculator

Need more help?

Economic Checkup from NCOA

Economiccheckup.org 19

STEP 5: FINANCIAL HELP FOR OLDER

ADULTS

Healthcare

Major expense for older adults is healthcare

Medicare.gov: Find help with paying for drug coverage, drug costs, and Medicare premiums

Medicare has “Extra Help” program for low-income seniors to help pay for prescription drug costs, premiums, coinsurance, and deductibles

https://secure.ssa.gov/i1020/start

Medicare Rights Center:

National telephone helpline

1-800-333-4114 20

STEP 5: FINANCIAL HELP FOR OLDER

ADULTS (CONT.)

Eldercare Locator: Eldercare.gov

Benefits Checkup: Benefitscheckup.org

Reverse Mortgages

Borrow against the equity in your home

Not right for everyone—do your homework!

Consider other options for using home equity

homeequityadvisor.org

National Council on Aging (ncoa.org) and CFPB.gov

Immediate Annuities

Pay lump sum up front--guarantees a regular

monthly payment for life21

STEP 6: IMPORTANT LEGAL AND

FINANCIAL DOCUMENTS

Durable Power of Attorney Appoint someone to act on your behalf and make financial

decisions

Healthcare Power of Attorney and Healthcare Proxy Appoint someone to make health decisions for you

Living Trust Transfer ownership or title of your assets to a trust

You keep control during your lifetime, but given to trustee when you die

Last Will and Testament Directions to where and to whom your assets should go after

you die

Living Will Declaration of your healthcare wishes

ABA Fact Sheet: http://www.americanbar.org/content/dam/aba/migrated/Commissions/myths_fact_hc_ad.authcheckdam.pdf

22

STEP 7: ELDER FINANCIAL FRAUD &

ABUSE

Older Americans hold largest percentage of wealth

Makes them targets for financial abuse

Caregivers often spot abuse, as they are in closest contact with elders

Who are the victims?

Mostly between ages of 80-89

Women twice as likely as men

Live alone

Require some level of help (health or home maintenance)

Who are the perpetrators?

Strangers 51%

Family/Friends/Neighbors 34%

Business 12%

Medicare/Medicaid Providers 4%23

STEP 7: ELDER FINANCIAL FRAUD &

ABUSE (CONT.)

Misuse of assets

Consumer fraud/scams

Theft

Negligence

Power of Attorney Abuse

Reverse Mortgage Scams

Living Trust and Annuities Scams

Deed Theft and Foreclosure Rescue Scams

Failure to pay bills

Failure to buy food or

medication

Large amounts of money

withdrawn or

transferred

Missing personal

property or belongings

Isolation of the elder

from friends or families

Types Signs

24

STEP 7: ELDER FINANCIAL FRAUD &

ABUSE (CONT.)

How can you help?

Be aware

Pay attention

Educate seniors and caregivers

Advise older adults to contact support groups

Report when you notice signs of wrongdoing

Resources

National Center on Elder Abuse

ncea.aoa.gov – State resources, helplines, hotlines

National Adult Protective Services Association

napsa-now.org

National Center for Victims of Crime

victimsofcrime.org

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SAVVY SAVING SENIORS: STEPS TO

AVOIDING SCAMS TOOLKIT

Developed by the National Council on Aging and WISER

Workshop for seniors, and includes presentation, facilitator guide, and participant handbook

Available on WISER’s website and at ncoa.org 26

STEP 8: END-OF-LIFE PLANNING

Planning in advance helps everyone have peace of mind

Where do I want to die?

How do I want to die?

What kind of medical treatments do I want?

Who do I want to care for me?

What kind of funeral service to I want? Do I want to buried and where?

Resources:

Compassion & Choices, compassionandchoices.org

National Hospice and Palliative Care Organization, nhpco.org

The Conversation Project, theconversationproject.org/

Five Wishes, agingwithdignity.org/five-wishes.php27

ADDITIONAL RESOURCES

Caregiver Action NetworkCaregiveraction.org – provides education and peer support for family caregivers

Caring.com – For help finding assisted living facilities and other housing options, elder law attorneys, geriatric care managers, and online support groups

Lotsa Helping Hands Lotsahelpinghands.com – create your own online site to coordinate support activities among family, friends and volunteers 28

ADDITIONAL RESOURCES

Caring From a Distance, Cfad.org – special help for long-distance caregivers including communication and online tools to help families coordinate care planning

Help Our Wounded, helpourwounded.org –resources for caregivers and wounded veterans

Well Spouse Association, wellspouse.org – peer support and education about the challenges facing caregiving spouses

29

RESOURCES

FROM WISER

WISER has been helping

caregivers for more than

18 years!

View or download a PDF

copy of the booklet and

other resources at

www.wiserwomen.org

30

THANK YOU FOR JOINING US

TODAY,

AND THANK YOU FOR ALL THE

GREAT WORK YOU DO!

Lara Hinz, MSW

WISER

lhinz@wiserwomen.org

www.wiserwomen.org

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