Caregiving in the U.S. is on the rise. Yet, studies show that those who provide care feel severely unsupported in society and in the workplace.
New research from Edward Jones reports that two out of five people in the U.S. serve as family caregivers, and an expected 46% of Americans will soon provide care to family and friends in the future.
Caregivers say they face rising costs and inflation (56%) along with inadequate retirement savings (42%) at a disproportionate rate. Nine out of 10 caregivers report having at least some level of financial concern for their retirement, and 51% admitted to cutting down on personal spending to afford caregiving costs.
Others expressed feeling an emotional and mental toll in providing care to a loved one. Eighty-nine percent of caregivers describe caregiving as a significant emotional responsibility, 83% say it has left them stressed, and 77% say they are burned out. Another 66% admit to not having prioritized their own health.
“Caregivers have an essential role in our society, yet our research found that they often bear great financial burdens and sacrifice their own well-being to care for their children and their elder family members without adequate support,” said Ken Dychtwald, founder and CEO of Age Wave. “As family caregivers are a crucial part of our care systems, their vital role in society demands greater recognition, resources and relief, especially as America’s population continues to live longer with more chronic conditions and the need for caregiving grows.”
Caregivers say they don’t feel supported by society or their workplace for their added responsibility. Eighty-two percent of respondents believe caregiving lacks public awareness and recognition, and instead, many say they end up relying on their family (67%) or friends (43%) for support.
Over two-thirds of Americans, including 77% of those caring for elderly adults and 78% who care for special-needs individuals, are also calling on Congress to provide resources and support for caregivers. Over three-fourths of Americans back federal legislation that would help caregivers, while 73% support expanded retirement account contributions and 74% support additional “catch-up” contributions for caregivers.
Current bills like the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, sponsored by Sens. Susan Collins (R-ME) and Mark Warner (D-VA), build on SECURE 2.0 to provide caregiving resources. The Improving Retirement Security for Family Caregivers Act would allow qualified family caregivers to contribute up to $7,000, or up to $8,000 for those ages 50 and older, to a Roth individual retirement account (IRA), while the Catching Up Family Caregivers Act would allow family caregivers to make catch-up contributions to a retirement account for up to five years.
Industry firms have also expanded their resources to include caregiving support for employees and participants. Voya Financial on Tuesday announced its new collaboration with Family First, a caregiving advocacy provider, to offer personalized concierge caregiving support to employer groups with Lifetime Life Insurance or Voya Leave Management.
According to Voya, through Family First, employees have access to live support and certified care professionals that guide them through caregiving challenges. These professionals include nurses, social workers, mental health professionals, and case/care managers, and are supported by a “multi-disciplinary team that include physicians and other experienced specialists.”
Caregivers will also have access to a digital app with a “Care Library” of educational videos and articles, and a “Caregiving Risk Index,” that incorporates a “Caregiver Burnout Scale” aimed at preventing burnout.
“Many of us may find ourselves in caregiving roles at some point in our lives, often without fully grasping the profound impact it can have or knowing where to turn for support,” said Nate Black, SVP of Health Solutions Product at Voya Financial. “Our collaboration with Family First enables us to support employees and their families in navigating the challenges of caregiving by providing effective solutions and connecting them to the appropriate resources.”
SEE ALSO:
Gen X Planning to Retire Later Due to Caregiving and Inflation
Millennial Women Feeling Financial Toll of Caregiving
Caregiving and Unexpected Costs Add to Financial Struggles for Pre-Retirees
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.