In the United States, a staggering one in nine individuals aged 65 and older are grappling with Alzheimer’s disease, affecting over 6 million people nationwide and approximately 110,000 in Maryland alone. This growing health crisis not only impacts the well-being of those diagnosed but also places an immense economic burden on families, often jeopardizing their financial security.
January recognized as Financial Wellness Month, has prompted the Alzheimer’s Association to urge Americans to proactively manage their finances, particularly in preparing for the potential crisis of caring for someone with Alzheimer’s or other forms of dementia. The association emphasizes the importance of early financial planning to mitigate the challenges faced by families during such difficult times.
Cindy Schelhorn from the Alzheimer’s Association National Capital Area Chapter highlighted the strain on working Americans who also shoulder caregiving responsibilities for Alzheimer’s patients. “Six in 10 Americans are working while managing Alzheimer’s caregiving responsibilities. Many experience financial problems as they are forced to go from full-time to part-time employment, adjust work schedules, or take time off due to caregiving demands. Some give up work entirely. The loss of income can significantly impact the family’s well-being,” she said.
The 2023 Alzheimer’s Association Alzheimer’s Disease Facts and Figures report sheds light on the staggering costs associated with dementia care. In 2022, the lifetime cost of care for a person living with dementia was estimated at $392,874. Dementia caregivers, in particular, faced nearly double the out-of-pocket costs compared to non-dementia caregivers ($12,388 versus $6,667). Additionally, nearly half of the caregivers had to reduce their expenses, including essential needs, to afford dementia-related care, while others dipped into their savings or retirement funds.
The report also highlighted a common misconception regarding Medicare, with nearly two-thirds of people incorrectly believing that it helps pay for nursing home care or being unsure about it.
In Maryland alone, around 247,000 people are providing unpaid care for family or friends living with Alzheimer’s. As the disease progresses, the need for paid services or support increases, underscoring the importance of financial literacy for caregivers.
To address these challenges, the Alzheimer’s Association has launched a free online education program titled “Managing Money: A Caregiver’s Guide to Finances.” The program offers crucial tips, including the benefits of early financial planning, initiating positive discussions about finances, avoiding financial abuse and fraud, organizing financial resources, and creating a backup plan by designating a trusted agent for the person’s power of attorney.
For more detailed guidance on financial planning for Alzheimer’s care, individuals are encouraged to visit the Alzheimer’s Association website at alz.org and explore the “Plan for Your Financial Future” page. This initiative underscores the critical need for awareness and proactive measures in managing the financial implications of Alzheimer’s disease, both for patients and their caregivers.
