Family Caregiving for Alzheimer Disease Worth a 6-Figure Annual Salary: New Research
Supported by Otsuka, new research calculated the value of daily hours spent on basic chores and complex tasks required to support a loved one with AD.
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A caregiver for a loved one with Alzheimer disease (AD) would earn an annual salary reaching 6 figures—on average $114,000—if remunerated for the daily care they provide, according to new research.1 The estimated yearly value is based on average wages calculated for the broad spectrum of typical daily tasks associated with care for an individual with Alzheimer or other dementias. Those responsibilities can range from basic household chores to complex nursing tasks and financial counseling.
The findings come from "Americas Unseen Workforce: What if Family Caregivers Were Paid a Salary?” a study sponsored by Otsuka Pharmaceuticals and conducted by Salary.com. The study is part of a larger research series by the company that advocates for the visibility and support of family caregivers.1
“This timely research documents the financial impact of family caregiving to a critical segment of our population who serve as the primary support system for their loved ones,” Debra Barrett, vice president of corporate affairs for Otsuka, said in a company news release. “We need to re-envision healthcare and social support networks to safeguard the well-being of family caregivers and the loved ones they tirelessly serve. This community deserves to be supported with resources that offer a tangible impact in their lives.”1
Almost half (47%) of caregivers for a family member with AD reported in a survey last year that they feel as though they “are drowning and unprepared for the role.” More than half (55%) said the role of caregiver was the most important responsibility of a lifetime and close to two-thirds (65%) said it was more stressful than any previous job they’d held.2
The Alzheimer’s Association assesses the societal value of caregiving for dementia at $350 billion,3 yet the individual contributions of those attending to the needs of family members or other loved ones are rarely noted. Family caregivers must often reduce their own employment hours or leave the workforce entirely. The 2023 Otsuka survey revealed that 64% of respondents admitted having to make difficult financial choices.2 In 2021, AARP calculated that family caregivers spend an average $7242 of their own money every year, and that does not include the value of the time spent on the job giving care.4
The wider conversation around the economic value of unpaid family caregiving for family members with AD is essential to assessment of the phenomenon and its consequences, but “it does not depict the immense loss and burden on individual caregivers,” Greg Wolf, managing director at Salary.com, said in the news release. “This research shows that these family caregivers are taking on a full-time job, requiring a complex skillset, which would equal significant income if in the paid workforce.”1
The pharmaceutical company’s research on compensation aligns with measures recently introduced in Congress that address caregiving, including tax credits for services and “streamlining early detection to support older Americans and their families,” Otsuka said. The Centers for Medicare and Medicaid Services leads the Guiding Improved Dementia Experience model, which will tackle the financial challenges of unpaid family caregiving and create a movement for alternate payment models.1
Otsuka, working again with Salary.com, has developed an online compensation calculator (Family Caregiver Calculator) that computes an estimated annual salary for providing care for a family member with AD, based on number of hours entered into the calculator and a ZIP code.
“I commend Otsuka’s leadership in fueling the growing advocacy for the millions of family caregivers of those with Alzheimer’s or other dementias who make up our country’s unseen workforce,” Liz O’Donnell, founder of Working Daughter, said in the release. Working Daughter is an online community for women who are balancing eldercare, children, childcare, and more. “The interactive compensation calculator enables this critical community to put a number to their time and immense contribution, which I hope will ignite a rallying cry of support,” O’Donnell added.
“Behind every family caregiver is an immeasurable love and an unimaginable strength. At Otsuka, we’re committed to continuously gaining a deeper understanding of how the lives of family caregivers are impacted so that we can offer meaningful resources that provide support and alleviate some of the challenges experienced along their unique journeys,” Tarek Rabah, president and CEO of Otsuka North America Pharmaceutical Business, concluded.2
References
1. New study finds family caregivers would earn six figures if paid a salary. News release. Otsuka Pharmaceuticals. October 14, 2024. Accessed October 15, 2024. https://www.otsuka-us.com/news/new-study-finds-family-caregivers-would-earn-six-figures-if-paid-salary
2. Otsuka announces corporate commitment to value the mind of every family caregiver. News release. Otsuka Pharmaceuticals. November 28, 2023. Accessed October 15, 2024. https://www.otsuka-us.com/news/otsuka-announces-corporate-commitment-value-mind-every-family-caregiver
3. Alzheimer’s Association. 2024 Alzheimer’s Disease Facts and Figures. Available at: https://www.alz.org/media/documents/alzheimers-facts-and-figures.pdf
4. AARP Research. AARP research insights on caregiving. July 18, 2023. Accessed October 15, 2024. https://www.aarp.org/pri/topics/ltss/family-caregiving/aarp-research-insights-caregiving/
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