Cecily O'Connor
RedwoodAge.com

If you're a boomer caring for parents, there's a good chance you're spending thousands of dollars a year helping them get by. 

About 45 percent of those caring for aging parents are providing financial assistance, according to a poll by Caring.com. And two-thirds are more concerned about their parents' financial situation following the recent stock market crash.

Boomers fear their parents' retirement savings may run out, worry that parents will have to move in with them and are concerned their parents may have to sell other assets beside their home.

The average adult child caring for an aging parent spends $5,534 annually for out-of-pocket expenses on items such as medications, safety equipment and bath necessities. These items are paid for by caregivers, with money from vacation accounts, savings and slush funds.

"Caring for aging parents is extremely challenging," said Andy Cohen, CEOr at Caring.com. "For baby boomers ... the caregiver role affects their marital relationships and physical health, and now, because of the stock market crash, it's having an even greater impact on their finances."

These financial concerns highlight the importance of policies that protect workers with caregiving responsibilities. The US Equal Employment Opportunity Commission has issued a list of best practices to ensure companies are maintaining caregiver-friendly workplace policies, particularly during an economic recession.

"The poor economy and lack of job creation means that families will need to ensure that they do what they can to keep parents working," said Heather Boushey, senior economist with the Center for American Progress Action Fund.

Sandwiched
Caregiving has always been costly, but given the downturn, boomers are worrying about how to make ends meet since they are being pulled in many financial directions. In addition to tending to elderly parents, some caregivers also are supporting their own children. Not to mention that many adults nearing retirement face precarious financial circumstances themselves, with savings accounts ravaged by market losses and home values on steep decline.

About 31 percent fear they may - or are already planning to - delay retirement. Another 43 percent is cutting back on extras like entertainment and vacations, while 37 percent expect to have less savings when they retire.

Boomers worried about the downturn's further effects should talk to parents about their financial situation. How to have difficult conversations, like taking away car keys, whether or not to remain in the home, and status of finances, are among the most common concerns.

About 60 percent of those in the survey had conversations with parents about finances in the past two months. Thirty-five percent are talking with parents about money more than they did before.