Rep. Josh Gottheimer (D-Tenafly) was in Monmouth County on Thursday to announce a new plan to make family caregiving more affordable. The plan proposes creating new tax credits and removing financial penalties for caregivers to combat startling statistics: more than half of family caregivers experience financial setbacks.
With New Jersey’s population getting older – the last of the Baby Boomers will turn 65 by 2023, a focus on caregiving could help Gottheimer’s bid to become New Jersey’s next governor. Monmouth County’s population of over 55 has exploded in recent years.
“Expenses for family caregivers like housing, healthcare and transportation — can end up costing more than $7,000 a year. On average, family caregivers can spend more than one-quarter of their income on caregiving activities alone,” Gottheimer said. “This has forced too many family caregivers to take on debt, pay bills late, or cut into their retirement — all in the name of doing right by their loved ones.”
As part of his Family Caregiving Plan, Gottheimer is proposing a waiver for early withdrawal penalties on retirement accounts. He also wants families to turn up to 30% of their expenses into tax credits, up to $5,000.
Gottheimer’s Improving Retirement Security for Family Caregivers Act would allow caregivers to contribute up to $7,000 to their Roth IRA even if they’re not working full time.
“The good news is that Americans are living longer than ever, and we should celebrate the progress we have made on that front. But it also presents new challenges,” he said. “We need to do everything we can to help ease the financial stress that forces too many families and loved ones to choose between basic necessities like rent, food, and diapers. My Family Caregiving Plan help do just that.”
Former Monmouth County Freeholder Amy Mallet and former Fair Haven Councilman Chris Rodriguez joined Gottheimer.