Caregiving costs create growing obstacle to women's retirement security

Caregiving responsibilities are creating a significant financial drag on women's retirement prospects, with two major research reports documenting how family care obligations are depleting savings, pushing women from the workforce, and undermining long-term financial security.

The Transamerica Center for Retirement Studies' 25th Annual Retirement Survey reveals stark gender disparities in retirement readiness. Women workers have accumulated roughly half the retirement savings of men, with median household retirement accounts of $56,000 compared to $92,000. Just 63% of women are confident about retiring comfortably, compared to 75% of men.

The Transamerica report shows 43% of women have served as caregivers during their careers, compared to 35% of men. Only 25% of women have written retirement plans, and just 32% work with financial advisors. Additionally, 27% of women expect Social Security to be their primary retirement income source, compared to 19% of men.

The financial toll on caregivers is substantial: women caring for aging parents lose a median of $24,500 in wages over two years. Among women working past age 65 or in retirement, 83% cite financial reasons for continuing to work, including needing income and concerns that Social Security will be less than expected.

Meanwhile, Guardian's 14th Annual Workplace Benefits Study documents how caregiving demands are forcing women to leave employment entirely. Women are five times more likely than men to report being out of the workforce specifically because of caregiving obligations. Among women juggling caregiving and employment, 44% have seriously considered reducing work hours, 38% have contemplated leaving their jobs, and 35% have turned down promotions.

The Guardian survey found caregivers spend an average of 26% of their income on caregiving-related expenses. Nearly half of caregivers – 48% – report low overall well-being compared to just 15% of caregivers who feel supported by employers. Among those providing care, 38% live paycheck to paycheck, and 40% struggle to manage their finances effectively.

The Guardian data reveal the depth of financial distress among working caregivers. A quarter of caregivers earn less than $50,000 annually, and 19% have less than $1,000 in emergency savings. Two in 10 caregivers report that their caregiving responsibilities have negatively impacted their household's financial confidence. More broadly, 37% of caregivers say they are not good at managing their finances, while one-fifth say caregiving has negatively impacted their overall financial situation.

Single women caregivers are in particularly dire straits. Fifty percent of single mothers rate their financial health as fair or poor. Women in the sandwich generation – those caring for both children and aging parents – are going through harder times, with 55% rating their financial health as fair or poor compared to just 20% of men in similar situations. Single parents overall are 77% more likely to take extended leaves from work than partnered parents, compounding their financial vulnerability.

As getting professional care services becomes more prohibitively difficult and expensive – the median cost for home health aide services in the US is $34 per hour – the number of family caregivers has shot up 45% over the past decade. The time families devote to caregiving responsibilities has also nearly tripled, jumping from nine hours weekly in 2020 to 23 hours in 2025. Guardian's data shows that workplace flexibility has contracted considerably as return-to-office mandates have become more prevalent, with full-time in-office requirements among Fortune 500 companies jumping from 13% to 24%.

"Caregiving duties also affect finances through divorce, as divorce rates are higher among caregivers than non-caregivers," the Guardian report noted, highlighing how 80% of Baby Boomers who care for a parent experience marital strains. "Younger caregivers struggle to maintain their romantic relationships and don’t have the extra time of their non-caregiving peers to dedicate to building lasting friendships."