The Financial Impact of Double Duty “Sandwich” Caregiving

According to Statistics Canada, approximately 6% of Canadians (2.4 million) are “sandwiched” or “double duty” caregivers. The term refers to caregivers who support a family member, most often an aging parent, while also raising children under 18. These caregivers are more likely to be middle-aged women and more likely to have more caregiving responsibilities. The number of dual caregivers is expected to increase in the coming years, adding to the number of stressed and resource deprived caregivers.

WHY IS DOUBLE DUTY CAREGIVING ON THE RISE?

More seniors are prioritizing aging-in-place (living in their own homes with support) over long-term care and retirement facilities, making them more reliant on family caregivers. At the same time, Canadians are starting families later in life, increasing the likelihood they’ll have young children while also caring for elderly parents. Their elderly parents are likely to live longer than previous generations, increasing the years of care they’ll require.

THE FINANCIAL IMPACT OF SANDWICH CAREGIVING

Money is a top stressor for Canadians, and caregivers face specific financial challenges. The significant costs of caring for aging parents and children at the same time, in uncertain economic times, can be staggering.

1. AGING IN PLACE COSTS: Many sandwich caregivers have elderly parents who want to stay in their homes but require financial support to do so. This could include the cost of bringing personal support workers into the home, making modifications to the home for safety, or maintenance-related costs.
2. INCREASED CHILDCARE COSTS: Parents already face high childcare costs. Those costs may increase for double duty caregivers as they’re required to spend more time supporting the other care recipient.
3. INCREASED TIME DEMANDS AWAY FROM PAID WORK: Although this is an issue for many caregivers, double duty caregivers have twice the demand on their time. This often results in taking time off work, refusing a promotion, or even leaving paid work altogether. 76% of double duty caregivers say they will have to reduce their hours at work as a result of their duties.
4. MORE LIKELY TO GO INTO DEBT: Caregivers who lose income may dip into their savings prematurely and go into debt at a time in their lives when they should be saving for their own future retirement.
5. REDUCED SAVING ABILITY: Sandwich caregivers may find they’re supporting more people for much longer than expected. This could include adult children, nearly half of whom live at home in their 20’s in Canada today. Supporting a higher number of people may prevent caregivers from saving for their own future, impacting their retirement.
   
   

THE IMPLICATIONS

The financial consequences of sandwich caregiving can be significant, especially if the caregiver leaves paid work due to their responsibilities. However, the strain can also impact the care recipient: according to the Canadian Centre for Caregiving Excellence, when caregivers are not well supported, their care recipient is more likely to be prematurely admitted to hospital or long-term care. Caregiver distress can even worsen the care recipient’s symptoms.

Caregivers who experience financial hardship are put in the unfair position of choosing between their own future or the needs of their loved ones. Considering our healthcare system relies on their unpaid work, it’s doubly unfair that caregiving could contribute to a legacy of debt and poverty for those who step up to the task.

WHAT NEEDS TO BE DONE TO BETTER SUPPORT DOUBLE DUTY CAREGIVERS?

Today, financial support for caregivers in Canada doesn’t come close to meeting the need. There is no national strategy, leaving caregivers to navigate a confusing patchwork of programs and tax credits. It’s so cumbersome that in 2018, only 8% of caregivers accessed available financial supports.

For sandwich caregivers, there are no specific tax programs, EI benefits, or workplace rights. To better support them, these areas need to be addressed:

1. Tax Credit Reform: Tax credits need to reflect today’s financial realities and provide support to those who need it most. Today, the lowest earners are ineligible for most credits because they’re non-refundable. A sandwich caregiver with a moderate income by today’s standards, supporting multiple high-need dependents or even an additional household, may be deemed too wealthy. Reducing income thresholds for double duty caregivers could overcome this challenge.
2. Simplify Eligibility for Existing Programs: Eligibility for existing EI programs and tax credits may require significant administrative effort for the caregiver, or may simply not reflect the reality of caregiving. Compassionate Care Leave, for example, only applies to a caregiving scenario in which the care recipient is “close to death” and this criteria has to be certified by a medical doctor. Aging-in-place may require significant support, but care recipient might not meet the standards of “infirmity” that determine eligibility for tax credits. Simplifying the process of determining eligibility may help many caregivers apply for support. Eligibility criteria needs to reflect real caregiving scenarios to ensure those who need support can get it.
3. Elevate Workplace Standards: Today, providing flexibility to family caregivers in the workplace is left entirely to the employer. As the number of family caregivers increases, employers will face reduced productivity and higher turnover if supports are not in place. A simple place to start is with extended benefits, with employers creating programs for caregivers.
4. Financial Advice: Financial planning and tax filing support should be provided for double duty caregivers. This is especially important for those who become financially responsible (even partially) for another adult, especially if the CRA will take the care recipient’s income into consideration.

As the Canadian population ages, more people will find themselves in a sandwich caregiving scenario. Our healthcare system is already straining to support our senior population – family caregivers will continue to be a critical part of the solution. However, without support, double duty caregivers could become a large group of Canadians who are financially unprepared for their own golden years. We owe it to them to provide resources that reflect the specific challenges of providing double duty care.