When parents need care: Who bears the financial burden in India?

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The growing demand for care of the elderly

India's aging population is rising at a rapid pace, with rising numbers of parents requiring long-term medical treatment, home care, or institutional residence. While cultural assumptions still remain with children, the emotional and financial cost of caring for aged parents is more than ever before. "Who pays" is becoming an unavoidable query for most middle-aged Indians.

Direct costs to families

Doctors' bills, home care, nursing home care facilities, and prescription drugs soon mount. More than likely, children are reaching into their own pockets of savings to cover the costs, especially when parents lack proper retirement savings or health insurance. Since healthcare inflation is greater than overall inflation, these out-of-pocket expenses can disrupt family budgets.

The role of health insurance and government programs

Elderly people are commonly denied medical insurance, which is thin and expensive, with gaps in coverage. Some relief is provided by certain state and central government initiatives—such as the Ayushman Bharat scheme—but both awareness and reach remain low. Families are recommended to approach early on, rather than waiting when health situations compel them.

Emotional and career costs for caregivers

The financial impact is only part of the scenario. The majority of caregivers, again primarily women, give up their jobs to assist aging parents. This reduces household income and can sidetrack retirement savings for the caregivers themselves. Managing both full-time work and caregiving is also a leading stress factor, causing burnout and mental illness.

Shared responsibilities and planning ahead

Experts advise that siblings, or family members, should share caregiving responsibilities wherever possible. Money planning such as setting aside a parental care fund, purchasing early insurance, and taking community or NGO-arranged elder care services makes the job easier. Money and care discussions, although taboo, must be conducted to avoid future fights.

FAQs

Are children legally required to pay for their parents' care in India?

Yes. The Maintenance and Welfare of Parents and Senior Citizens Act, 2007, legally holds children accountable for parents' basic needs. Parents can even take their caregiver children to a tribunal in the event of neglect.

What are the steps in financial planning that can prepare caregivers?

Starting a parental care fund, arranging for parents to buy senior citizen health insurance at an early stage, and confirming eligibility for government schemes can make long-term burden easy.

Does caregiving have any impact on retirement savings of children?

Yes. Many caregivers are dipping into their retirement money or forgoing savings in order to pay for parents' medical bills. Simultaneous planning for both parents' and children's futures then becomes a necessity.