FINANCIAL DISTRESS OF ADULT CHILDREN TAKING CARE OF AGING PARENTS

Abstract

Abstract Providing care to parents is often a rewarding experience for adult children, however, one trade-off is the toll it takes on the caregiver's own financial security. Using the framework of life course theory, the current research examines the sources of support (family, community and the government) that may reduce parental caregivers' financial distress. In this study, we examine whether intensive parental caregivers are experiencing financial distress and whether the association between caregiving and financial distress is ameliorated by the presence of having siblings, community support, and government policy supportive of caregiving. This study utilizes data provided by the fifth wave of the survey of health and retirement in Europe (SHARE). Preliminary analyses are consistent with previous studies, that providing intensive care to parents is associated with an increased risk of experiencing healthcare hardship. Moreover, the findings align with life course theory as having support from family members and the government is associated with lower levels of financial distress. However, the effect of community support is not significant. This study suggests that adult children, especially adult daughters, sacrifice their own financial security for the benefit of caring for their parents. In addition, having a broad support network, such as caregiving support groups and caregiving educational programs, can reduce adult children’s financial distress, and enable them to provide care longer, which avoids or delays the need for costly institutional care. Ongoing analyses examine the potential long-term consequences of caregiving.