PLANSPONSOR - August/September 2018 - 14

Upfront
Helping
Caregivers
ONE out of every six workers assists with
caregiving, and this can derail saving for
retirement; employers have a role to play in
helping this sizable work force population
achieve financial wellness.
According to Voya, one out of every
five people in the U.S., or 56.7 million,
has a disability, and one out of every six
workers, or 105 million people, assists with
caregiving-be it for a family member
with a disability or an aging parent.
As a result, " caregivers deprioritize
their retirement saving, " says Tom Conlon,
head of client relations at Betterment for
Business. " This is why retirement plans
[need] to start with the best known practices:
automatic enrollment, on-demand
digital advice, managed accounts and
financial wellness programs, " he says.
Employers are in a unique position to
help caregivers, agrees Heather Lavallee,
president of the tax-exempt market for
Voya and head of Voya Cares, a program
the company launched to help caregivers.
These employees spend an average of 24
hours a week caring for their loved ones,
but only 56% report their responsibility to
their employers, she says.
" To help a caregiver save for retirement,
advisers and employers should
recommend health savings accounts
[HSAs] that caregivers can use to cover
out-of-pocket expenses not covered by
their medical plan, " Lavallee says.
Besides optimizing the use of benefits
such as life insurance, health insurance
and retirement plans, employers may
encourage caregivers to examine whether
their dependents qualify for government
benefits, which can be either means
tested-i.e., available to those whose
income falls below a certain level-or
structured as an entitlement, Lavallee says.
People with disabilities or special
needs who have less than $2,000 in
personal assets qualify for Supplemental
Security Income (SSI) benefits. " When
a child turns 18, he is means tested on
his ability to earn an income, and this
benefit could be as much as $500 to
$800 a month, " Lavallee says. " Receiving
[it] could free up the caregiver to divert
more of their own money toward retirement
savings. "
Medicaid, which gives health coverage
for, among others, people with disabilities,
and the Supplemental Nutrition Assistance
Program (SNAP)-aka food stamps-are
other means-tested benefits that can factor
into an employee's decisions about saving
in a retirement plan.
Two entitlement programs are Social
Security Disability Insurance, available to
those with disabilities or special needs,
and Medicare, which includes medical
coverage for those with a disability.
" There is also the ability for people to
take advantage of 529 ABLE [Achieving a
Better Life Experience] plans-state-run
savings programs for individuals with
disabilities, " Lavallee adds. " They allow
you to save $15,000 a year up to a total of
$100,000, and the money can be with14
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Art by Eron Hare
drawn tax-free when the funds are used to
pay for qualified disability expenses. "
Employers can also give caregivers
access to licensed clinicians and seek out
health insurance that includes caregiving
support, she says.
" Wellthy " is a program specifically
designed to help people care for aging
parents as an employer-linked benefit.
" We pair caregivers with a dedicated care
coordinator who helps them find the right
home aid, schedules appointments, negotiates
insurance bills and helps them find
the right health insurance option, " says
Lindsay Jurist-Rosner, CEO of Wellthy.
Jurist-Rosner says it is critical these
workers not quit their jobs. Instead,
they should hire a home aid, and, if they
cannot afford that, Medicaid might cover
it. " There are also day care programs in
many areas, and many are free, " she notes.
" Nonprofits and community organizations
provide resources, and there
are support programs for individuals
who have aging parents or children
with special needs. " She cautions people
against taking out loans from their 401(k)
plan to cover medical bills for disabled
dependents. -Lee Barney
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