New research from the Employee Benefit Research Institute (EBRI), based on the 2026 Retirement Confidence Survey (RCS), sheds light on a workforce challenge many employers may be underestimating: the financial and emotional toll of unpaid caregiving on retirement readiness.
Now in its 36th year, the RCS found that almost three in 10 Americans age 25 or older serve as unpaid caregivers, providing care to an adult or child with a health condition or disability. Notably, 73% of caregivers are currently employed, meaning this isn’t a private peripheral issue but instead a workforce reality that’s playing out on a large scale.
The financial toll is real:
Caregivers carry a heavier financial burden than their non-caregiving peers and the data backs it up. Key findings include:
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34% of caregivers have less than $10,000 in savings and investments, compared with 25% of non-caregivers.
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69% of caregivers say debt is a problem for them, versus 57% of non-caregivers.
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Roughly a third of caregiving workers provide direct financial support to the person they care for, and about one in five have taken on new or additional debt because of caregiving responsibilities.
Mental health takes the biggest hit: The most striking finding is one that employers may not immediately see—that is the mental health strain that happens behind closed doors. Data shows it has a bigger impact on employees than any single financial task.
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64% of caregiving workers say their mental health is negatively affected by their caregiving responsibilities.
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The financial tasks most disrupted are saving for emergencies (56%) and working the hours they want or need to work (54%).
Retirement confidence is slipping—especially for caregivers: Overall retirement confidence among American workers dropped to its lowest point this year since 2017, and caregivers are feeling the strain even more acutely.
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At both the lower and upper ends of the income spectrum, caregivers are notably less confident than non-caregivers that they will have enough money to live comfortably in retirement.
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They describe their current standard of living as only “fair” rather than “excellent,” and half say their retirement lifestyle isn’t what they had envisioned.
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Caregivers worry about the scenarios that could derail retirement plans: economic recession, rising housing costs, future changes in Social Security and Medicare.
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Caregivers are also more likely to say they retired earlier than planned because they needed to care for a spouse or family member, not because they were financially ready.
Where employers can make a difference:
One encouraging insight: caregivers are just as likely as non-caregivers to engage in non-financial retirement planning (including decisions about when they want to retire, where they’ll live, and how they’ll spend their time).
The financial preparedness gap shows that employers and their benefit partners can offer meaningful support.
Four areas worth employers’ attention, according to EBRI’s research:
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Flexibility: Scheduling flexibility and remote work options let caregivers manage competing demands without sacrificing income or career progression.
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Targeted education and resources: More than a quarter of caregivers say they lack the right educational and support resources to navigate major health and financial events—a gap benefits teams are well-positioned to close.
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Financial guidance: Caregivers were more likely than non-caregivers to cite personalized financial guidance as a top improvement they’d want in their retirement savings plan.
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Caregiving-specific benefits: Most current caregivers expect to take on this role again in the future, so benefits that directly offset caregiving costs can reduce financial strain and improve retention.
Caregiving is a recurring reality, not a one-time disruption:
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Unpaid caregiving is not a one-time interruption. If anything, EBRI’s data suggests it’s a recurring life stage for a large share of the workforce.
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Employers who recognize the unique financial and emotional pressures caregivers face and build benefits strategies around them stand to gain on retention, productivity, and long-term financial wellness of their employee population.
The full EBRI Issue Brief, “Caregivers and Retirement: Findings From the 2026 Retirement Confidence Survey,” is available here.
