Lara Hinz, M.S.W., Director of Programs Women s Institute for a Secure Retirement

Transcription

1 Presented to: National Network of Coalitions Tuesday, December 16, 2014 Lara Hinz, M.S.W., Director of Programs Women s Institute for a Secure Retirement

2 Join Our Network! Join by taking our survey at:

3 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 lowto 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.

4 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 4

5 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

6 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

7 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. 7

8 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 study showed caregivers lost $303,880 in wages, Social Security benefits, and private pensions. 8

9 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 caregivers 9

10 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

11 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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13 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

14 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

15 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

16 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

17 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, courtappointed guardians, trustees, and government fiduciaries Available online and can order free copies, individually or in bulk 17

18 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

19 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

20 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 Medicare Rights Center: National telephone helpline

21 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 life 21

22 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: authcheckdam.pdf 22

23 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 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

24 STEP 7: ELDER FINANCIAL FRAUD & ABUSE (CONT.) Types 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 Signs 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 24

25 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 25

26 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

27 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.php 27

28 ADDITIONAL RESOURCES Caregiver Action Network Caregiveraction.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

29 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

30 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 30

31 THANK YOU FOR JOINING US TODAY, AND THANK YOU FOR ALL THE GREAT WORK YOU DO! Lara Hinz, MSW WISER Like us on Facebook Facebook.com/WISERwomen Follow us on