Net worth of adults approaching retirement age: Personal health, presence of a chronically ill or disabled household member, and out of home caregiving

The US population is aging. As a result, an increasing number of workers, many in their prime earning years, will be called upon to provide care for older relatives and friends who live either within or outside of the worker’s household (Caputo et al., 2016). Caregiving for others may occur over a number of years, as when parents are caring for a child with disabilities into their adult years, or for a shorter period of time, as when caring for a spouse or an older parent. As the COVID-19 pandemic has made clear, caregiving expectations may arise unexpectedly. Unpaid caregiving and paid employment both compete for a working adult’s time. Over the life course, moving in and out of the labor market to meet caregiving needs of relatives or friends with chronic illness or disabilities may create economic turmoil in households that also may face increased need for costly health care-related goods and services (Parish et al., 2009; N.N.; Seltzer et al., 2001). A report from the National Alliance for Caregiving indicates that even before the pandemic, 70% of workers who provided care to elderly or disabled family members made adjustments to their work in order to handle caregiving activities, with impacts on take home pay and net worth for some individuals (NAC & AARP, 2015). The COVID-19 pandemic has further highlighted the need for structural changes to preserve the financial well-being of caregivers (van Dalen & Henkens, 2020).