The financial toll of caregiving persists long after the duties conclude, with women bearing the heaviest burden. Data from the NIH indicates that women dedicate nearly 10% of their adult lives to caring for older adults, compared to just 7% for men—a statistic that excludes the extensive years spent raising children.

These intense caregiving years leave a profound mark on retirement security. According to findings from the National Institute on Retirement Security, over half of surveyed individuals delayed saving until age 30 or later. Furthermore, EBRI's 2026 Retirement Confidence Survey—unveiled at the Caregiving at Work Forum in Washington, D.C.—revealed that 34% of working caregivers hold less than $10,000 in personal savings and investments, contrasted with 25% of non-caregiving employees.

Debt is also a major obstacle, with 69% of working caregivers reporting debt as a significant issue, compared to 57% of those without caregiving responsibilities. Additionally, 56% stated that caregiving impedes their capacity to build emergency reserves. EBRI classifies caregivers as anyone delivering unpaid support to an adult or child over the past year, assisting with fundamental tasks like bathing, eating, medication management, or financial oversight.

Caregivers Lose Retirement Money Two Ways

Caregivers are formally classified as individuals providing unpaid support to an adult and/or child within the prior 12 months in a noninstitutional setting, aiding with at least one activity of daily living (such as bathing, dressing, eating, or toileting) or instrumental activities of daily living (including complex duties like medication management, meal preparation, housekeeping, laundry, and financial administration).

The financial drain on retirement occurs through two primary mechanisms. First, caregiving limits employment capacity. EBRI reported that 54% of working caregivers feel their care duties restrict their ability to work desired hours, while AARP found that nearly two-thirds encounter at least one professional disruption.

Consider a 36-year-old mother earning $60,000 who reduces her work hours by 20% due to unreliable childcare. Assuming a proportional reduction, her annual earnings would decline by roughly $12,000. Reduced earnings mean smaller paycheck contributions to her retirement fund, alongside diminished employer-matching contributions.

Second, out-of-pocket expenses surge. The AARP 2026 Caregiving Out-of-Pocket Costs Study showed that caregivers spend an average of $11,508 annually of their own funds on care, a sharp rise from $7,242 in 2021. This accounts for roughly 31% of total household income, focusing exclusively on adult care. EBRI notes that 34% of working caregivers financially support their care recipients, and 20% incurred new or additional debt as a direct result. Those compelled to drain their retirement accounts spent an average of $17,907 annually on care, consuming nearly half their household income.

The Compounding Cost Of Caring For Everyone

Women rarely support just a single individual. A 48-year-old woman might spend her thirties funding childcare, only to transition directly into supporting an aging parent just as her children gain independence. The Caregiving at Work initiative defines this as lifespan caregiving: transitioning seamlessly from children to parents, in-laws, or spouses across a single professional journey.

Retirement savings do not reset between these life stages. Reduced savings during early childhood years followed by another dip a decade later for eldercare amounts to two distinct caregiving events impacting a single retirement portfolio. Every dollar redirected toward caregiving also forfeits potential investment growth, meaning younger caregivers face steeper long-term losses. Households with the narrowest margins absorb the most severe blows, as AARP discovered that caregivers earning under $40,000 dedicate an astonishing 76% of their income to caregiving expenses.

What Women In Their Mid-Career Years Can Do Now

Mid-career is typically when financial obligations peak, combining mortgages, household debt, dependent children, aging parents, and retirement accumulation into a single paycheck. Ahead of National Family Caregivers Month in November, proactive measures can assist women anticipating caregiving roles:

  • Evaluate how reducing work hours impacts retirement benefits, as certain plans depend strictly on employment status or hours worked.
  • Understand your employer match structure to determine if lowering your contribution inadvertently forfeits free employer funds.
  • Examine workplace caregiving benefits prior to experiencing a crisis, since paid leave, childcare aid, and eldercare resources offer little value if discovered only after cutting back your schedule.
  • Investigate public assistance programs for eldercare years, such as the federal National Family Caregiver Support Program, which provides counseling, training, support groups, and respite care for adults assisting individuals aged 60 or older, or those with Alzheimer's and related conditions.
  • Safeguard emergency funds whenever feasible, ensuring that upcoming caregiving costs do not force you into debt or compromise other financial objectives.