As women live longer than men—on average, 5 to 7 years longer—the later decades of life offer opportunities to cherish freedom and fulfillment.
Yet, as this International Women’s Day episode of the Financial Symmetry Show reveals, these extra years often bring unique financial challenges and disproportionate caregiving responsibilities that can affect women’s financial health. We bring together Allison Berger, Darian Billingsley, Niamh Douglas, and Haley Modlin to spotlight how the “Give to Gain” theme resonates deeply with women navigating retirement and caring for loved ones.
The Economic Reality of Caregiving
Despite being essential to families and the broader economy, unpaid caregiving work—most often performed by women—is typically invisible and undervalued. In the episode, we break down the numbers: caregivers, about 60-65% of whom are women, save their families tremendous sums by providing services that would otherwise cost tens, or even hundreds, of thousands annually in professional settings. For example:
- A home health aide (44 hours/wk): ~$78,000 per year
- Semi-private nursing home: ~$111,000 per year
- Private nursing room: ~$128,000 per year
- 24/7 in-home care: ~$290,000 per year
Yet these savings come at a real cost. Nearly 1 in 5 caregivers reports high financial strain. The most common consequence? A reduced ability to save for retirement. This is a knock-on effect that jeopardizes women’s financial stability when it matters most.
How Caregiving Shapes Women’s Careers
Feminized poverty in old age is not merely a statistical anomaly; it’s the outcome of systemic obstacles that add up over a lifetime. As we discuss in the episode, 59% of family caregivers in the U.S. are women, many of whom balance full-time work with up to 20–23 hours of unpaid care per week. This stress and logistical complexity often lead to significant professional sacrifices.
This “invisible backbone” of caregiving means fewer raises, lower Social Security benefits in retirement, and less robust employer-sponsored savings plans, further exacerbating a wealth gap that already places women at greater risk for financial insecurity in their twilight years.
Integrating Caregiving Into Financial and Tax Planning
Listen to the full episode, where we illustrate how caregiving can create complex tax situations but also open doors to potential savings if you know where to look. For example, if you provide more than 50% of financial support to a parent (whose income falls below a certain threshold), you may be able to claim them as a dependent, netting a $500 tax credit.
Other key opportunities:
- Dependent Care Credit: Frequently thought of as a childcare benefit, this credit may also be used if you pay for care for an adult dependent so you can work.
- Head of Household Status: If you maintain the home for a dependent parent, you might access lower tax brackets and a higher standard deduction.
- Medical Expense Deductions: Unreimbursed medical expenses that exceed 7.5% of your adjusted gross income can be deducted, including certain long-term care costs, medical devices, and even qualifying home modifications.
- For those considering a Continuing Care Retirement Community (CCRC), a portion of the large entrance and ongoing fees may be claimed as prepaid medical expenses, which is a deduction that can amount to thousands or even wipe out tax liability.
Empowerment Through Proactive Strategy
As the population ages, more families will confront the intersection of caregiving and retirement security. The solution isn’t just about planning for your own needs; it’s about strategically preparing for the loved ones you may help support. Recognize the real economic and emotional labor of caregiving, empower yourself with knowledge, and collaborate with a financial advisor to safeguard your financial well-being, so caring for others won’t mean sacrificing your future.
Outline of This Episode
- [00:00] Feminized poverty in retirement
- [05:29] Caregiving’s financial and emotional impact
- [06:42] Planning for elder care costs
- [10:45] Women’s wealth gap and risks
- [14:29] Medical expense deduction guidelines
- [17:57] Financial planning for caregiving
- [21:57] Retirement healthcare strategy insights
Resources & People Mentioned
- Allison Berger on LinkedIn
- Darian Billingsley on LinkedIn
- Niamh Douglas on LinkedIn
- Haley Modlin on LinkedIn
