Planning for the Financial Impact of Alzheimer’s and Dementia
Though the impact of Alzheimer’s disease on families and friends from a lifestyle and emotional standpoint has been well-documented, little research has been done into the financial impact of caring for some afflicted by the disease. To determine the impact, the Alzheimer’s Association conducted a nationwide survey. The results are discussed in the association’s 2016 Alzheimer’s Disease Facts and Figures report.
The association found that care contributors spent an average of $5,155 per year of their own money to care for a relative or friend with either Alzheimer’s or another form of dementia. Spouses and partners spent in excess of $12,000 per year while adult children spent an average of about $4,800 annually. Food, other groceries, travel and medical supplies (which include adult diapers) were the most common expenses.
There was a wide range of reported costs, with some survey respondents saying their annual expenditures exceeded $100,000. While it would have been useful to see the median (the number at which half of survey respondents reported spending less and half reported spending more) instead of the average number, the data still shows that caring for someone with cognitive impairment is not cheap.
More on AAII.com
- Long-Term Care of Your Personal Finances – Christine Fahlund, formerly with T. Rowe Price, made the argument for long-term care insurance in the January 2014 AAII Journal.
- Using Annuities for Long-Term Health Care – Last year, Stan Haithcock discussed the advantages and pitfalls of using annuities to cover long-term care expenses.
- How Do You Plan to Cover Future Long-Term Care Expenses? – See how members responded on the AAII.com Discussion Boards.
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The Week Ahead
Fewer than 10 S&P 500 members are on the calendar as the “official” start to first-quarter earnings season won’t occur for another 11 days. Reporting next week will be: Darden Restaurants (DRI) and Walgreens Boots Alliance (WBA) on Tuesday; Bed Bath & Beyond (BBBY), Constellation Brands (STZ) and Monsanto Company (MON) on Wednesday; and CarMax (KMX) and ConAgra Foods (CAG) on Thursday.
The first economic report of note will be February factory orders, released on Monday. Tuesday will feature February international trade, the March ISM non-manufacturing index and the February Job Openings and Labor Turnover Survey (JOLTS). The minutes from the March Federal Open Market Committee (FOMC) meeting will be released on Wednesday.
Several Federal Reserve officials will speak: Boston Federal Reserve Bank president Eric Rosengren and Minneapolis president Neel Kashkari on Monday, Chicago president Charles Evans on Tuesday, Cleveland president Loretta Mester on Wednesday, Chair Janet Yellen and Kansas City president Esther George on Thursday and Dallas president Rob Kaplan on Friday.
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