5. Caregiving Workers
The research determines caregiving is a potential threat to retirement security.
“With the skyrocketing costs of long-term care services and supports, many workers will be called upon to be an unpaid caregiver for an aging parent or loved one. This labor of love often involves trade-offs in a worker’s employment and financial situation which could compromise their future retirement,” said Collinson.
Almost four in 10 workers (38%) currently serve as caregivers or have been a caregiver in the past. In doing so, 85% have made one or more adjustments to their employment situation, ranging from missing days of work and reducing hours to foregoing a promotion or quitting a job.
Caregiving workers, including current and past caregivers, are more likely than non-caregivers (i.e., those who have never served as a caregiver) to have experienced one or more negative impacts to their employment during the pandemic (50%, 30%, respectively). Caregiving workers are also more likely to indicate their financial situation has worsened as a result of the pandemic (28% compared to 19%).
Despite their challenges, caregiving workers are faring slightly better than non-caregivers in retirement savings. Seventy-eight percent of caregivers are offered a 401k or similar plan by their employer, and 82% participate. Only 70% of non-caregivers are offered a plan, and 74% participate.
Caregiving workers have saved $70,000 in total household retirement accounts while non-caregivers have saved $64,000 (estimated medians).
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