Tax season perfect time for caregivers to take stock

During this tax season, the Alzheimer’s Association is encouraging individuals and families to take stock of their financial plans to help prepare for an unexpected disruption, such as caring for someone with Alzheimer’s or other dementia.

One in nine Americans age 65 and older are living with Alzheimer’s disease — that’s more than 6 million American nationwide and more than 410,000 in New York state. The disease not only takes a tremendous physical toll on diagnosed individuals, but the costs associated with the disease can be overwhelming, putting economical strain on families.

Disease-related costs can jeopardize a family’s financial security, and many loved ones make enormous personal and financial sacrifices as a result. The 2022 Alzheimer’s Association Facts and Figures report found that:

· In 2021, the lifetime cost of care for a person living with dementia was nearly $378,000.

· Average out-of-pocket costs for healthcare and long-term care services not covered by Medicare, Medicaid and private insurance is nearly $10,000 annually for people living with Alzheimer’s disease or other dementias.

· Nearly half (48 percent) of care contributors must cut back on their own expenses — including basic necessities like food, transportation and medical care — to afford dementia-related care, while others must draw from their own savings or retirement funds.

· Nearly two-thirds of people incorrectly believe that Medicare helps pay for nursing home care, or are unsure whether it does.

To help families navigate these and other financial challenges, the Alzheimer’s Association recently launched a free online education program, Managing Money: A Caregiver’s Guide to Finances. Tips from the program include:

· Plan early. There are many benefits of planning early when it comes to finances, both for the caregiver and the person with the disease.

· Start a positive discussion about finances. Bring in trusted family members or close friends for a discussion about what the person with the disease wants for the future.

· Avoid financial abuse and fraud. Individuals living with dementia have a greater risk of becoming victims and may struggle with making good financial decisions.

· Organize your finances. Conduct an inventory of your financial resources including savings, insurance, retirement benefits, government assistance, VA benefits and more. A financial planner or elder care attorney can help with this.

· Create a backup plan. Designate a trusted backup agent for the individual’s power of attorney and consider designating responsibilities to more than one person.

“Caregivers sometimes experience financial problems because they have to reduce their work hours or take time off to care for a loved one with dementia,” said Teresa Galbier, executive director of the Alzheimer’s Association Rochester Finger Lakes Chapter. “As the disease progresses, caregivers will need to pay for services or support for the person living with Alzheimer’s. Financial literacy is especially important for caregivers because it provides them with the knowledge and skills needed to better support themselves and others.”

The Alzheimer’s Association offers a number of educational programs with more tips for caregivers. Visit alz.org/rochesterny/helping_you/education/educational-programs for a complete list of free programs in the nine-county Rochester Finger Lakes region.

About the Alzheimer’s Association

The Alzheimer’s Association is a worldwide voluntary health organization dedicated to Alzheimer’s care, support and research. Our mission is to lead the way to end Alzheimer’s and all other dementia — by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. Our vision is a world without Alzheimer’s and all other dementia®. Visit alz.org or call 800.272.3900.