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Avraham "AY" Rappaport, CLTC
President, Financial Professional
Yaniv "Jay" Natanov
President, Financial Planner
Eli Rappaport
Vice President, Financial Planner
Shlomo Rosenstein
Financial Professional
Ozzie Marizan
Financial Planner
Joseph Greer
Employee Benefits Administrator
Dylan Pinsky
Client Relations Manager
Premier Financial
6395 Dobbin Road, Suite 102
Columbia, MD 21045
Phone: 240-309-6001
Email: dylan.pinsky@prudential.com
Website: premierfinancial1.com
January/February 2024
The High Cost of Senior Care
Do you care for a senior parent or another loved one? According to The National Alliance for Caregiving (NAC) and AARP, more than 50 million Americans are unpaid caregivers. On average, these caregivers pay 26% of their income and give 24 hours a week to help loved ones—often to their own financial and health detriment.*
Dual Problems
One financial problem many middle-income families face is that their loved one’s income disqualifies them from Medicaid services, and Medicare falls short on coverage for everything the person needs. Another is that caregivers ignore their own finances and jeopardize their continuing financial security. Some exhaust leave and vacation time and have to take unpaid time from work. Others quit working altogether. In addition, they may reduce or even stop retirement plan contributions to pay for their loved one’s care. The second problem is the mental stress and the physical exhaustion of caregiving.Possible Solutions
Tax Breaks — If your loved one lives with you, you may be able to claim them as a dependent on your tax return. Even if you can’t claim them as a dependent, you may be able to deduct the out-of-pocket care expenses you pay for them. To claim the deduction, those expenses, and your medical expenses, much exceed 7.5% of your adjusted gross income, and you must provide more than half your loved one’s support. Talk with your tax advisor.Employer Help — Talk to your employer about programs or benefits it may offer, such as flexible schedules, working from home, family leave programs, and dependent care flexible spending accounts. Each household may contribute up to $5,000 a year in 2024 ($2,500 married filing separately) to a dependent care account to use for the costs of caring for a dependent loved one. Your contribution is free from income tax, Social Security and Medicare taxes, and some states’ income tax.
Other Assistance — If your parent is a veteran, the U.S. Department of Veterans Affairs may help pay for some home health care following hospitalization. For your mental health and well-being, the Family Caregiving Alliance provides a guide to respite services in each state.
* Caregiving in the US, AARP and NAC, 2020, and Caregiving Out-of-Pocket Cost Study, AARP, 2021
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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Dylan Pinsky is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
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