How Advisers Can Help Businesses Address Caregiving Needs

As the U.S. population ages and life expectancy continues to increase, employees are increasingly being forced into caregiving roles. However, employer benefit programs have yet to catch up, leaving employees more likely to reduce work hours or even exit the workforce early to care for loved ones, inevitably reducing their retirement savings.

More than 37 million Americans older than age 15 are unpaid caregivers, often working full-time, says Surya Kolluri, head of the TIAA Institute and co-author of a recent report, “Unready: The State of Preparedness of Current and Future Caregivers.” Kolluri adds that 43% of respondents aged 40 to 64 are already caregivers, and 31% expect to enter a caregiver role.

For retirement plan advisers, the increased demand for caregiving raises concerns about plan participation and long-term savings behavior, and it also complicates fiduciary guidance related to retirement readiness. Industry professionals say advisers will need to understand how caregiving benefits can address these issues and which specific benefits can be suggested to employers.

How Caregiving Affects Retirement

TIAA found that retirement plan participants frequently turn to retirement savings to cover caregiving needs. The report noted participation deficits can range from 40% to 90% by the time retirees reach age 65, depending on the length of time required for caregiving. With these losses, caregivers would need to work between eight and 24 additional years to make up for lost contributions.

The strain is especially visible for the “sandwich generation,”—those caring for both younger and older generations—according to Kara Hoogensen, senior vice president of workplace benefits at Principal Financial Group. She says 22% of “sandwich generation” workers have already left a job due to caregiving responsibilities, according to Principal’s quarterly Financial Well-Being Index.

While long-term care is an often-neglected aspect of retirement planning,  Hoogensen says employees also “need to be able to look to their employer as a trusted resource.”  She notes that, according to Principal’s 2025 Global Financial Inclusion Index,  67% of surveyed employees said they trust their employer will support their financial well-being, compared with 62.1% who said they trust financial systems and 44.6% who said they trust the government.

Given that many employees rely on their employers for other forms of support like health care, Hoogensen says it makes sense that employees also trust their employer to help address caregiving needs.

Why Caregiving Benefits Matter

While caregiving benefits can be costly to implement, Shane Jacksteit, a California-based financial adviser for Edward Jones, says employers who invest in such benefits often see meaningful returns in workplace retention and productivity.

Jacksteit recommends advisers “put [themselves] in the seat of the employer for just a moment. … Think about all the costs that come with these benefits and try to find the right balance.” 

That balance can vary, depending on the size of the employer, but Jacksteit says it can be as simple as providing flexibility. Jacksteit recalls a client who needed to move her mother into the client’s home to take care of her, and the client’s employer let her shift to a remote working model to meet her caregiving needs.

Principal’s “Work and Worth Relationship Report,” published in February, found that financial assistance for caregiving provides a 14% boost to overall employee well-being, slightly outperforming a traditional raise, which gave a 13% boost. The same report also found that when employees, regardless of caregiving status, have access to paid family care options—such as paid family leave, financial assistance for caregiving and paid parental leave longer than six weeks—they are 20% more loyal to their employer.

Benefits to Offer

Kolluri says three types of caregiving benefits are logical, highly valued benefits employers can implement to help employees: 

1. Subsidized Caregiving Services

Employers can offer discounted rates for their employees’ use of such caregiving options as in-home care, visiting nurses and assisted living support. Caregiving services are often expensive and difficult to navigate, so even small subsidies can significantly reduce financial strain.

2. Support With Essential Paperwork

Though often overlooked, help with power-of-attorney forms, wills and trusted contact authorization becomes critical when an employee manages a parent’s finances or care. Offering services to help employees complete and organize these documents can prevent costly crises.

3. Consultation, Care Planning Resources

When a parent suddenly needs care, employees rarely have the time or expertise to make informed decisions. Employers can provide access to specialists who can guide families through questions such as:

• Does the individual need a visiting nurse or full-time assistance?
• Should the person remain at home or move to a care facility?
• How much do different options cost?
• Which local providers are reputable?

“I would rank employers providing caregiving benefits way up there in importance,” says Kolluri. “Because there are more and more and more unpaid caregivers who are in the workplace, so providing these benefits can be extremely impactful [and] positive for productivity.”

More on this topic:

	22% of ERISA Lawsuits in 2025 Involved Health Plans
	Long-Term Care Planning, Without the Emotional Charge