Adults age 55 and older contribute $162 billion worth of volunteering and unpaid caregiving annually, researchers at the Urban Institute estimate in a new report. These activities include caring for family members, helping friends and neighbors, and volunteering for nonprofit organizations.
Urban Institute researchers measured the value of unpaid activities by older Americans in 2002 and found that the value ranged from $97.6 billion to $201.0 billion in 2002, depending on the hourly "wage" that was assigned to various tasks. Moderate-cost assumptions, they said, led to the $161.7 billion estimate, or $2,698 per senior. Nearly three-quarters of older adults volunteered their time or provided unpaid care to family members in 2002.
Because older adults are not generally paid for their help, these services are often overlooked in the ongoing debate about Social Security, possible changes to the retirement age, and the proper role of older Americans in an aging society, the Urban Institute says.
Caring for family members absorbed more than 61 percent (or $99.6 billion) of the total value of unpaid activities, based on moderate-cost assumptions. About two-fifths of this $99.6 billion went to spousal care, another two-fifths to grandchild care, and the remaining fifth to parent care. By comparison, the nation spent an estimated $135 billion on formal long-term care services for the elderly in 2004, according to the Congressional Budget Office. Older Americans contributed another $44.3 billion through formal volunteering with an organization and $17.8 billion by informally helping others in need.
Interestingly the report also found that those age 55-64 earned $655 billion at paid jobs, more than eight times the value of unpaid activities. Even at age 65-74, when most people have stopped working, unpaid activities equaled barely half the monetary value of paid employment.
To download a copy of the report, "Value of Unpaid Activities by Older Americans Tops $160 Billion Per Year," by Richard Johnson and Simone Schaner, go to: https://www.urban.org/url.cfm?ID=311227
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