ROSELAND, NJ, January 24, 2025 /24-7PressRelease/ -- Many Americans are already struggling to save for retirement due to the high cost of living. Jaime Raskulinecz, CEO of Next Generation Trust Company, noted that another factor that's throwing pre-retirees and retirees off their retirement savings target is the cost of family caregiving, which affects 53 million Americans today.

According to a study by the Columbia University Mailman School of Public Health, potential caregiving expenses average $7200 a year, a figure that puts a big dent in many people's savings.

"The cost of caregiving also affects generational wealth, since the caregiver is less able to manage debt and accrue significant savings for retirement as well as an inheritance," said Raskulinecz, whose firm provides administration and custodial services for self-directed retirement plans.

The Columbia University study revealed that:
• Caregivers who begin their duties at a younger age risk an average 40% to 90% deficit in retirement savings by age 65, depending on salary, compared to non-caregivers (due to reallocating retirement contributions toward caregiving costs).
o If someone earning $50,000 a year begins caregiving at age 35, that individual will see a 107.8% retirement savings deficit at 65 years old.
o For those earning $75,000 a year, the gap is 60.4% and for those making $100,000 a year, the deficit is 46.9%.
• This deficit is equivalent to another seven to 21 years of work to recover the savings loss.

Survey highlights risk of familial caregiving expenses to retirement savings
In a recent blog article on the Next Generation website, Raskulinecz cited results of the Society of Actuaries Research Institute's biennial Retirement Risk Survey among U.S. retirees and pre-retirees aged 45 to 80 across all income levels. The initial findings showed that middle-aged and older Americans are becoming more aware of the need to financially prepare for unexpected events—and that they've been saving less due to the challenges of familial caregiving and inflation. For example, 38% of pre-retirees and 27% of retirees surveyed feel unprepared to take on a family member's medical emergency or health issue.

The Next Generation article offers suggestions for individuals to prepare for the potential financial impact of family caregiving on their ability to save for retirement and shares information on several bipartisan Congressional bills.

"The Caregiver Financial Relief Act and other legislation aim to reduce the financial burden of family caregiving, and some bills will provide greater flexibility regarding contributions to retirement plans," said Raskulinecz. "Investors who understand alternative assets can optimize their retirement savings and build a more diverse portfolio by including real estate, precious metals, private equity funding, commodities and more in a self-directed IRA. These and other nontraditional investments also create a hedge against stock market volatility because their returns are not correlated with publicly traded stocks and bonds."

For more information about self-directed IRAs and other self-directed plans, visit https://www.NextGenerationTrust.com.

(973) 533-1880 x113

About Next Generation
Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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