Data shows that 43% of full-time workers in the U.S. balance a career with caregiving duties—a 13% increase from 2019—and women play a central role in those responsibilities.[1] Providing care for a child or an aging parent is a deeply personal commitment that often requires a prolonged career break. This decision can shape your long-term financial path, but with the right planning, you can stay on track with your wealth goals.
Although caregiving responsibilities can occur at any age, women often become caregivers around age 52, a critical period for accumulating retirement assets.[2] Stepping away from the workforce during these peak earning years can halt retirement contributions and reduce long-term compounding growth.
Additional challenges include impeded career progression, increased financial dependence on others, and the assumption of significant expense. In many cases, caregiving can also shift the dynamics within a household. Transitioning from two incomes to one can change how financial decisions are made, how responsibilities are shared, and how each partner experiences financial independence. These changes are both practical and emotional, and they can influence everything from day-to-day spending to long-term planning. Being intentional about communication, financial transparency, and shared decision-making can help maintain alignment during this period.
For many, being a caregiver reflects values around family, responsibility, and long-term well-being, making proactive financial planning even more important. This guide explores the financial considerations associated with caregiving and offers strategies to help you protect and grow your wealth.
Understanding the Financial Challenges of Caregiving
The financial demands of caregiving extend far beyond the immediate costs of medical bills or daily assistance. Taking a leave of absence or leaving the workforce entirely creates a ripple effect across your entire financial profile.
Loss of Income and Retirement Contributions
When you stop working, you lose your primary source of income and ability to fund employer-sponsored retirement plans. You also miss out on valuable employer-matching contributions. Research shows that a five-year career break to provide care for children or aging parents can cost workers nearly $346,000 in compounded returns from their retirement savings.[3] Additionally, over a third of caregivers report having stopped saving, 24% have used up their personal short-term savings, and 13% have used long-term savings, such as retirement accounts, to pay for other expenses.[4]
Since women represent the majority of informal caregivers, they’re more likely to feel this impact. Combined with longer life expectancies and rising healthcare costs, that gap matters over time, underscoring the importance of planning for both today’s needs and the years ahead.[5]
Increased Caregiving Costs and Debt Accumulation
Caregiving comes with new, ongoing expenses—from home health support to transportation and specialized care—that can add pressure to a household budget. For many, this impact is significant: a quarter of caregivers take on debt, half report financial strain, and one in five face challenges covering everyday expenses.[6]
Caregiving for a loved one introduces a distinct and often underestimated layer of financial complexity, even for families with substantial wealth. The associated costs can accumulate rapidly and, without deliberate planning, create meaningful pressure on liquidity and cash flow. For high-net-worth individuals, the central challenge is rarely affordability in isolation—it is the discipline of integrating near-term care demands into a broader wealth strategy without compromising long-term objectives, whether those involve intergenerational wealth transfer, philanthropic commitments, or portfolio continuity. Proactive planning, ideally in coordination with a trusted advisory team, allows families to address these competing priorities with clarity and confidence.
Strategies for Maintaining Financial Stability and Growth
There are several steps you can take to maintain financial security before and during a career break. By acting early, you can help achieve your investment goals and ensure your family remains financially stable.
Build a Robust Emergency Fund
Before transitioning into a full-time caregiving role, establish a strong financial safety net. Keep at least three to six months of living expenses in a low-risk, highly accessible account; a money-market deposit account or a high-yield savings account works well for this purpose. This emergency fund provides a buffer against unexpected expenses, reducing the need to liquidate investments during periods of market volatility.
Explore Flexible and Part-Time Work
Leaving the workforce entirely is not the only path to consider. Many women successfully negotiate flexible work arrangements to balance their careers and caregiving duties. Consider transitioning to part-time hours, working remotely, or taking on freelance projects. Maintaining a partial income stream allows you to continue funding your retirement accounts and minimizes the resume gap, making re-entry into the workforce easier later.
Maximize Spousal Benefits and Healthcare Accounts
If you’re married and your spouse remains employed, review their benefits package together, including options for maintaining health insurance coverage. Additionally, explore tax-advantaged accounts, like a health savings account (HSA) or a Dependent Care Flexible Spending Account (FSA).
An HSA allows you to set aside pre-tax income for family healthcare expenses, provided you have a high-deductible health plan. A Dependent Care FSA helps cover costs like nannies, adult daycare, or summer camp. You can also leverage a spousal IRA, which allows a working spouse to contribute to a retirement account on behalf of a non-working spouse.
How does caregiving impact Social Security benefits?
Because Social Security benefits are calculated based on your 35 highest-earning years, taking a multi-year career break can result in lower lifetime benefits. Depending on your earnings, years with zero income may decrease your benefits, underscoring the importance of using spousal IRAs and maximizing your retirement savings while you are actively employed.
Planning For Your Future Return and Retirement
Your caregiving role will evolve over time, and you may eventually decide to return to your career. Taking small, intentional steps along the way helps make that transition feel more seamless, positioning you to rebuild momentum in both your career and your finances. Staying connected to your professional field while away can make a difference. This might include keeping up with industry trends, maintaining relationships with colleagues and mentors, or exploring opportunities to build new skills. These efforts don’t have to be extensive, but they can leave you feeling more confident and prepared when you’re ready to re-enter the workforce.
When you return, it can be helpful to refocus on your long-term financial goals. Prioritizing retirement contributions—even gradually—can help rebuild your savings over time. For those age 50 or older, catch-up contributions to retirement accounts like 401(k)s and IRAs offer an additional opportunity to accelerate progress.
It can also be a natural time to revisit your broader financial strategy. Reviewing your asset allocation, consolidating accounts, and aligning your portfolio with your current goals and time horizon can help ensure your plan continues to support you moving forward. Working with a trusted wealth advisor can provide added clarity and confidence as you navigate this next chapter.
Securing Your Financial Future While Caring for Family
Caring for an aging parent or a growing child is a deeply meaningful commitment. With the right planning, you can navigate this chapter while continuing to build toward your long-term financial goals.
You don’t have to choose between caring for others and caring for your financial future—both can be part of a well-considered plan. Partnering with a trusted wealth advisor can help ensure your plan continues to evolve alongside your goals and priorities.
- Guardian. “From Workforce to ‘Careforce’: Caregiving responsibilities cause more women to step away from their careers.” ↩
- U.S. Department of Labor Women’s Bureau, “Older Women and Unpaid Caregiving In the U.S.” ↩
- Yahoo Finance. “PensionBee Finds Career Break for Caregiving May Cut Retirement Savings by Nearly $346,000.” ↩
- Yahoo Finance. “PensionBee Finds Career Break for Caregiving May Cut Retirement Savings by Nearly $346,000.” ↩
- TIAA Institute. “Unready: The state of preparedness of current and future caregivers.” ↩
- AARP. “Caregiving in the US 2025.” ↩