Which LTSS Financial Support Policies Are Preferred Among Caregivers and Can Reduce Racial/Ethnic Disparities in Retirement?

Abstract

Although family caregivers are the backbone of the long-term care system of services and supports (LTSS), caregiving is challenging and often comes at a financial cost to caregivers, from both the direct costs incurred in providing care and the reduced labor market returns to providing care. As a result, many caregivers can end up jeopardizing their retirement security. Although the need for better support is clear, what is unclear is which policies would be most effective in reducing the financial burdens associated with caregiving and whether different policies work better or are favored by different racial/ethnic groups. Existing policies to reduce direct out-of-pocket costs or labor market costs for family caregivers are generally limited and few, and vary greatly by country. This project uses mixed methods to understand which policy proposals would be most beneficial to different groups of carers.

The paper found that:

• Focus group participants across socioeconomic groups and demographics preferred direct cash compensation for care or reimbursements for out-of-pocket costs.
• The least popular participant policy was paid family leave.
• The responses are consistent with the quantitative analysis, which shows that caregivers will receive the greatest financial benefit from being paid directly.

The policy implications are:

• Caregivers, especially caregivers from diverse backgrounds face significant financial costs of caregiving and choose policies that alleviate those costs.
• Much of the policy discussion has focused on types of paid leave, which is one of the least popular policies among caregivers.