The Hidden Retirement Cost of Employee Caregiving
Recent data shows a notable overlap between caregiving and financial fragility. The 2026 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research, found that unpaid caregivers were more likely than non-caregivers to have limited savings and report problems with debt.
Among caregiving workers, 56% said caregiving affected their ability to save for emergencies, while 54% said it affected their ability to work the hours they wanted or needed. Moreover, 34% said they provided financial support to the person receiving care, and 20% took on new or additional debt because of their caregiving responsibilities. Nineteen percent reduced the amount they contribute to a retirement savings plan, and 10% took a loan or withdrawal from one. Against this backdrop, caregivers also report lower levels of retirement confidence.
Additional key findings from the research include:
Higher income does not eliminate the challenge. Retirement confidence gaps between caregivers and non-caregivers appeared at both lower and higher income levels, while no measurable difference was found among those with household incomes of $35,000 to $74,999. The findings suggest that caregiving is not only a lower income issue and that outreach based on income alone may miss some employees who could benefit from additional support.
Caregiving can alter retirement expectations. Caregiving workers were more likely than non-caregiving workers to expect to retire at age 70 or later or never retire (44% of caregiving workers vs. 37% of non-caregivers), suggesting greater uncertainty about when retirement will be financially feasible. Retirement education and planning resources tailored to those expecting to work longer may help address these participants’ needs.
Caregivers may benefit from more targeted guidance. Among those with household incomes of $75,000 or more, caregivers were less likely than non-caregivers to have taken several key retirement-planning steps, including estimating how much they need to save, planning for emergency expenses in retirement, and calculating expected health care costs. Participant communications focused on these areas may help address these and other retirement-planning needs while managing competing financial demands.
Plan support and the broader benefits strategy. Targeted education, flexible work policies, emergency-savings resources, and other caregiver benefits can work together to help employees remain financially prepared while managing caregiving responsibilities. Notably, caregivers and non-caregivers alike ranked options that provide guaranteed lifetime income after retirement among the most valuable possible improvements to their plans.
For sponsors, the findings are a reason to look at whether current participant communications reach employees managing care responsibilities. Your plan advisor can help you identify where that messaging has gaps and which existing benefits caregivers may not know about.
Source:https://www.ebri.org/docs/default-source/pbriefs/ebri_ib_661_rcscare-22jul26.pdf?sfvrsn=55f00c2f_2
This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation. The material presented was created by RPAG. Securities, investment advisory, and financial planning services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC (www.sipc.com). Supervisory Office: 16 Campus Blvd, Newtown Square, PA 19073. Cadence Financial Management, LLC is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.