Caregivers are concerned about what the future holds for their special needs relative, and for good reason. Alarmingly, 67 percent of Americans with special needs have no Special Needs Trust established for them, which puts them at imminent risk of losing Medicaid coverage and Social Security benefits.

Almost nine in ten caregivers (87 percent) are concerned about what will happen to their special needs relative when they are no longer living.
Fifty-nine (59) percent of caregivers have not taken the basic step of preparing a will
Sixty (60) percent of caregivers with life insurance have less than $300,000 of coverage and fewer than half have the protection of whole life coverage. However, the lifetime cost of caring for a dependent with autism is between $1.4 and $2.4 million.
Only 23 percent of caregivers have a formal financial plan for their dependent and only 37 percent work with a financial advisor.

Caregivers are also concerned about their own financial future and how their caregiving responsibilities may adversely impact their retirement. Most special needs caregivers will be caregivers for the duration of their lives — encompassing their entire retirement period — yet almost one-third of this group (30 percent) is not saving at all for retirement.

Only 16 percent of caregivers strongly believe they are financial secure.
Seventy (70) percent believe they will have to compromise their own retirement plans in order to provide for their special needs dependent.
Seventy-seven (77) percent are concerned they won't be able to retire when they want to.
Eighty (80) percent of caregivers are concerned they won't be able to maintain a comfortable lifestyle throughout retirement.

"The number of children born with special needs continues to grow, and the cost of care is escalating as well. Unfortunately, the financial services profession has not made special needs planning a priority, so too many families are unprepared for their financial future," said Beck. "However, there are well-established resources for special needs planning and advisors who specialize in serving these families. Together, these solutions can help provide financial security for both caregivers and those in need."

Instant Insights /

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