How to Be a Caregiver and Not Go Broke Yourself

Jeopardized retirement savings. If you're contemplating going part-time or even stopping work altogether in order to care for someone, think about your own retirement security first. Consider the situation of a 61-year-old retiree from San Francisco: When his mother, now 94, had a stroke three years ago, he quit his truck-driving job and took an early retirement package. He estimates that his pension is about 30% less than it would have been had he worked till age 65. "If I'd stuck it out the next three or four years, the higher pension plus getting a salary all that time, I'd be in much better shape financially," he says. "I sometimes wonder if I made the right decision."

At a minimum, try to work long enough at your job to become fully vested in your company pension or retirement plan. That way, you can take all your employer's contributions with you. Even after you leave work, continue contributing to an individual retirement account (IRA) on your own to make up for the lack of a workplace plan and diminished social security credits.

If you can’t stick around until you’re fully vested, think about cutting back on hours until you are, instead of giving up your job entirely. Part-time work may also allow you to keep some benefits, like health insurance. "Caregiving is so stressful, you want to make sure that you have your own health care covered in case something happens to you," says Hughes.