The Caregiver Squeeze
October 30, 2026The Caregiver Squeeze
How rising financial stress is weighing hardest on employees who care for family, and what employers can do about it
Key Takeaways
Caregivers carry substantially higher financial stress than their colleagues, but the right guidance can help. These findings draw on 134,144 Financial Finesse users surveyed from January 2024 through September 2026, along with recent external research.1
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Stress premium4 in 10
About four in ten elder and sandwich-generation caregivers reported high or overwhelming financial stress in 2026, compared with fewer than three in ten employees with no dependents.1
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Rising stress+8 to +10 pts
High or overwhelming financial stress rose in every group from 2024 to 2026, including increases of 8.0 to 10.0 percentage points among caregivers.1
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Program outcomes59%
Among caregivers with high or overwhelming stress who engaged with Financial Finesse from 2021 to 2025, 59% or more, depending on the group, moved to some or no stress.1
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Shared demand95%
Both employees and employers, at 95% each, agree that financial services companies should provide customized financial planning support for caregivers.2
Caregiving in the American Workforce: A Growing and Uneven Burden
Voya’s 2026 research describes caregiving as a widespread, lasting responsibility that reaches employees at every age and career stage.2 Financial Finesse’s data sorts employees into four groups based on what they report when first surveyed: no dependents, caring for children, caring for elderly parents or other family members, and the sandwich generation, who care for both children and aging parents.1
A Growing Older Population
The Population Reference Bureau describes the growth of the population ages 65 and older as unprecedented in U.S. history.3 It projects that this group will grow from 58 million Americans in 2022 to 82 million by 2050, a 42% increase.3 Over the same period, its share of the population will rise from 17% to 23%.3
Most caregivers expect the responsibility to continue.4 In the 2026 Retirement Confidence Survey, 72% of caregiving workers said they were likely to provide unpaid care in the next five years, compared with 42% of workers who were not caregivers.4
Caregiving Strain Is Not Only a Matter of Income
A fair question is whether income, rather than caregiving, explains the financial gaps between caregivers and other employees.
Survey data suggests that income does not explain the whole gap.4 In the 2026 Retirement Confidence Survey, caregivers in both the lowest and highest income bands were more likely to lack confidence that they would have enough money to live comfortably in retirement than non-caregivers with similar income.4
Not confident of having enough to live comfortably in retirement
The Financial Toll and Why It Is Getting Worse
Financial stress rose among the employees Financial Finesse surveyed from 2024 to 2026.1 The 2026 Retirement Confidence Survey found that workers’ confidence in a comfortable retirement fell to its lowest level since 2017, and that debt and cost-of-living challenges affected many Americans.4 Financial Finesse’s survey data shows the same pressure: the share of employees reporting high or overwhelming financial stress rose in every group, including employees with no dependents.1
Caregivers took on that increase from an already higher starting point.1 In the first nine months of 2026, 38.0% of employees caring for children reported high or overwhelming financial stress, along with 42.8% of those caring for elderly parents or other family members and 41.5% of the sandwich generation.1 Among employees with no dependents, the share was 28.8%.1
| Caregiving group | High or overwhelming stress | Financial Wellness Score | ||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2025 | 2026 | Change | 2024 | 2025 | 2026 | Change | |
| No dependents | 22.1% | 22.6% | 28.8% | ▲ 6.7 pts | 4.90 | 4.80 | 4.70 | ▼ 0.20 |
| Caring for children | 28.3% | 30.6% | 38.0% | ▲ 9.7 pts | 4.80 | 4.66 | 4.57 | ▼ 0.23 |
| Elderly or parent caregivers | 32.8% | 35.4% | 42.8% | ▲ 10.0 pts | 4.60 | 4.53 | 4.45 | ▼ 0.15 |
| Sandwich generation | 33.5% | 37.1% | 41.5% | ▲ 8.0 pts | 4.71 | 4.52 | 4.45 | ▼ 0.26 |
The gap between caregivers and their colleagues is large and has persisted across all three years.1 In 2026, the share of elder caregivers reporting high or overwhelming stress was 14.0 percentage points higher than among employees with no dependents.1 The gap was 12.7 points for the sandwich generation and 9.2 points for employees caring for children.1 Financial Wellness Scores declined for every group over the same period.1
Sources of Financial Pressure
The rise in stress follows several years of sharp increases in the price of paid care.5 An AARP Public Policy Institute analysis found that private-pay costs for home health care and assisted living rose by almost 50% from 2019 to 2024.5 Over the same period, the median income of households headed by someone 65 or older rose 22%.5 EBRI found that sandwich-generation workers, who live with both their parents and their children, were more likely to see their financial assets shrink.6 From 2020 to 2022, 39% of them saw a decrease, compared with 29% of other workers who lived with their parents.6
Caregiving also reaches into the workday.2 In the 2026 Voya survey, 73% of employed caregivers had used their own sick, vacation, or personal leave to provide care, and 48% had cut back on work hours.2 Caregivers also pay for care out of their own pockets, according to AARP’s 2021 study, which tracked these costs through a survey and a week of expense records.7 Among caregivers who reported such costs, the average was $7,242 a year, most of it for a loved one’s housing and medical needs.7 Those costs rise with work disruption: caregivers whose jobs were disrupted in two or more ways spent an average of $10,525 a year, almost twice as much as those with one or no disruption.7
The effects can last beyond the working years: in the 2026 Retirement Confidence Survey, 56% of retired caregivers had retired earlier than planned, compared with 44% of retirees who were not caregivers.4
Most employers do not yet offer elder care services or caregiving education, though many plan to add them.8 In EBRI’s 2025 employer survey, fewer than four in ten employers offered either benefit, and nearly half planned to add each.8
Financial Wellness Programs Work for Every Caregiving Group
From 2021 to 2025, employees in all four groups who engaged with their employer’s financial wellness program reduced their financial stress and raised their Financial Wellness Scores.1 The groups started from different baselines but improved at similar rates.1
| Caregiving group | Initial | After engagement | Gain |
|---|---|---|---|
| No dependents | 4.81 | 5.41 | +0.60 |
| Caring for children | 4.69 | 5.36 | +0.67 |
| Elderly or parent caregivers | 4.53 | 5.19 | +0.66 |
| Sandwich generation | 4.59 | 5.24 | +0.65 |
In Financial Finesse’s scoring methodology, raising a Financial Wellness Score from the 4s into the 5s means taking real-world action. These are several of the milestones employees may work through along the way.1
- Getting the full company retirement match
- Creating a regular monthly surplus
- Emergency savings of $1,000 or more
- A debt payoff strategy in place
Score gains ranged from 0.60 to 0.67 points.1 For benefits leaders, this means caregiving employees respond to financial wellness programs as well as their colleagues do, so the main challenge is reaching them.1 Outreach timed to the moments when caregiving responsibilities surface can connect caregivers with help as their financial pressure rises. Examples include Medicare’s annual open enrollment period, for employees helping a parent choose coverage; a W-4 update or benefits change that adds a dependent; and a request for caregiver leave or a more flexible schedule.
Caregivers Are Asking for This Support
Caregivers are looking for personalized financial help.2, 4 In the 2026 Retirement Confidence Survey, caregivers were more likely than non-caregivers to turn to family, friends, and their own online research for retirement planning.4 Among workers offered a retirement plan, more personalized financial guidance was the only one of caregivers’ six most-valued plan improvements that they named more often than non-caregivers.4 Emotional stress can get in the way: in the Voya survey, 41% of caregivers cited it as a barrier to seeking financial planning support, compared with 25% of the general population.2
Employers have their own reasons to act.2 According to Voya, 64% of employers are concerned about reduced productivity among caregivers, up from 57% in 2018.2 Voya also found that 95% of employers agree financial services companies should provide customized financial planning support for caregivers.2
A Growing Burden With a Workable Response
Financial stress rose among the employees Financial Finesse surveyed from 2024 to 2026, and caregivers took on that increase from an already higher starting point.1 In the first nine months of 2026, about four in ten elder caregivers and about four in ten sandwich-generation caregivers reported high or overwhelming financial stress.1 Among employees with no dependents, the share was fewer than three in ten.1
The same data shows that the right guidance can help.1 Caregiving employees who engaged with a financial wellness program reduced their stress and raised their scores at rates similar to their colleagues without dependents, even though they started from a harder position.1 Caregivers and employers agree on the need: 95% of each say financial services companies should provide customized financial planning support for caregivers.2 For employers, the opportunity is to make sure that support reaches caregivers as their responsibilities change, before the strain compounds.
References
- 1Financial Finesse. Financial Wellness Think Tank analysis of user survey data, 2021–2026. El Segundo, CA: Financial Finesse, 2026.PROPRIETARY RESEARCH
- 2Voya Financial. Caregivers at Work: Progress Made, Pressures Persist. Voya Cares, 2026. Survey of 666 employees and 306 employers, fielded February 3–17, 2026. Accessed September 24, 2026.
- 3Mather, Mark, and Paola Scommegna. “Fact Sheet: Aging in the United States.” Washington, DC: Population Reference Bureau, January 9, 2024. Accessed September 24, 2026.
- 4Copeland, Craig, and Lisa Greenwald. “Caregivers and Retirement: Findings From the 2026 Retirement Confidence Survey.” EBRI Issue Brief, no. 661. Washington, DC: Employee Benefit Research Institute, July 22, 2026. Accessed September 24, 2026.
- 5Houser, Ari. Long-Term Services and Supports Are Becoming Even More Unaffordable for Middle-Class Americans. Washington, DC: AARP Public Policy Institute, March 12, 2026. Accessed September 24, 2026.
- 6Thephasit, Samita. “Home Together: Assessing the Financial Impact of Living With Parents.” EBRI Issue Brief, no. 652. Washington, DC: Employee Benefit Research Institute, February 19, 2026. Accessed September 24, 2026.
- 7Skufca, Laura, and Chuck Rainville. Caregiving Out-of-Pocket Costs Study 2021. Washington, DC: AARP Research, June 2021. Accessed September 24, 2026.
- 8Employee Benefit Research Institute. “2025 EBRI Financial Wellbeing Employer Survey.” Presented at the 2025 Financial Wellbeing Symposium, December 11, 2025. Survey funded in part by Financial Finesse.
About Financial Finesse
Financial Finesse is the leading independent global provider of unbiased financial coaching as an employee benefit, driving measurable improvements in employee financial wellness and proven employer ROI. Employees receive unlimited access to certified financial coaches (CFP® professionals or in-country equivalents) and AI-powered guidance that expands reach and personalization with trusted human oversight at every step.
Serving more than 20,000 organizations and reaching millions of employees worldwide through a single integrated platform, Financial Finesse delivers localized experiences tailored to each employee’s country, language, culture, financial system, and benefits. The result: reduced financial stress, seamless scalability for employers, and a benefit employees trust, value, and actively use.
The Financial Wellness Think Tank™ publishes original research on the state of financial wellness in America, drawing on millions of employee interactions each year.
