In a multigenerational family, two middle-aged adults might find that their dependents include not just children, but also an aging or disabled parent.
Financial hurdles for multigenerational families include loss of income and retirement assets due to providing assistance to a parent. When you have an aging parent living with you, just the normal day-to-day living costs can start to add up, which can affect the couple’s cash flow and savings. While any income the parent receives can help offset the additional living costs, often that income is used to pay for medical and health care expenses for that parent.
Further, that parent may need around-the-clock assistance at some point, which will put further stress on the family.
Considering paying for full-time care is extremely expensive. Some families have elected to have one spouse stay at home and be the caregiver. The decision to quit your job to stay at home with Mom or Dad has an impact on your current financial situation and a lasting impact on your future retirement. Leaving work means losing not just current income but also future Social Security or pension income, as well as employer benefits such as health insurance and 401(k) contributions.
If you do not take care of your own physical, mental, and financial health, then ultimately no one will benefit from this arrangement.