Nearly half of American caregivers report that their caregiving duties severely impact their ability to save for retirement, according to new research from Voya Financial, Inc. (NYSE: VOYA). The study reveals broader financial challenges facing caregivers, with over 50% reporting significant effects on emergency savings and mental well-being.
"Caregiving comes with significant emotional challenges, and the financial strains are often a concern. In fact, Voya's research found that 27% of caregivers changed jobs to provide care," said Carole Mendoza, VP, benefits at Voya Financial.
The research uncovered widespread financial implications beyond retirement savings. Caregivers reported severe or major impacts on various financial aspects:
Home purchases (40%)
Mortgage and rent payments (38%)
Childcare costs (35%)
College expenses and student loans (30%)
"The sad reality is that millions of people are thrust into the role of family caregivers, and many are unequipped to do so," South Shore Elder Services notes on its website.
The study suggests employers can play a crucial role in supporting caregivers. Employees indicated they would be more likely to stay with companies that provide:
Health spending and savings accounts (51%)
Voluntary benefit offerings like critical illness and disability insurance (51%)
Comprehensive caregiver planning resources (36%)
"Employers have an opportunity to demonstrate a commitment to an inclusive and supportive workplace for caregivers and all employees," Mendoza noted. "Offering comprehensive benefits that include support for caregivers can also be a significant factor in attracting and retaining talent, along with promoting higher job satisfaction and overall well-being."
Notably, 53% of non-caregivers expressed interest in using employer-provided caregiver resources, suggesting a broader demand for such support across the workforce.
For more information about caregiver support, visit https://sselder.org/family-caregiver-support.