More than half juggle a child too, and majority took the role on with no plan
Of the more than 3.6m Canadians who manage money for an adult aged 65 or older, 76 percent are employed, including 64 percent working full-time, and 54 percent are sandwiched, supporting at least one child at the same time.
The Financial Impact of Caregiving, a report Edward Jones Canada produced with Age Wave and The Harris Poll, found that 46 percent of financial caregivers make personal financial sacrifices.
Of those caregivers, 44 percent stopped or reduced saving, 25 percent reduced or paused contributions to retirement accounts, 22 percent tapped non-retirement savings and 20 percent drew on retirement or registered accounts.
Another 23 percent took on extra work or shifts, 22 percent borrowed money or delayed repaying debt, 22 percent gave up a career opportunity or promotion, 21 percent stopped working entirely and 20 percent took unpaid leave.
The average tenure in the role is seven years, at roughly 89 hours a month. Average caregiver age is 49, and 63 percent care for a parent.
Tracey McLennan, head of high net worth and legacy planning at Edward Jones Canada, said caregiving can affect a person’s finances.
McLennan said that as a caregiver herself, she knows “how easy it is to focus entirely on the needs of a loved one while neglecting your own needs.”
She said decisions such as “drawing on savings, postponing retirement goals or putting career aspirations on hold” can “compound over time.”
Nearly all financial caregivers, 92 percent, spend their own money on behalf of the person in their care.
Among the 84 percent not reimbursed in full, annual spending averages $7,025.
Where the recipient’s own resources are insufficient, net contributions average $10,190 a year.
In aggregate, the report puts financial caregivers’ contributions at $20bn annually.
Scott Sullivan, principal and Canada business segment leader at Edward Jones, said financial duties often go unnoticed in caregiving.
He said millions of Canadians are “managing bills, accounts and financial decisions for loved ones, often for years at a time,” while putting their own finances at risk.
Financial caregiving was planned and discussed in advance only 29 percent of the time, with 34 percent reporting no advance planning at all.
Onset was gradual for 69 percent and sudden for 31 percent.
Seventy-one percent entered the role with little or no planning.
Only 22 percent of care recipients have all three of a will, a designated power of attorney, and some form of health care directive.
Among caregivers whose care recipient died, 69 percent remained responsible for financial and legacy matters afterward, spending an average of 9.7 months settling estates, accounts and personal property.
Caregiving negatively affected the health of 49 percent, and 83 percent reported at least one significant lifestyle impact, with 41 percent cutting personal spending and 39 percent reducing time with family and friends.
Caregivers of disabled adults aged 18 to 64 reported heavier demands than those caring for adults 65 and older: 94 hours a month against 89, and negative health effects at 57 percent against 49 percent.
More than three-quarters, 76 percent, said caregiving changed how they prepare for their own future.
About 51 percent work with a financial advisor, and 43 percent of those first sought advice because of caregiving.
