Caregiving Costs Rise 59% Since 2021, Driving Significant Financial Stress for Employees
New data from Financial Finesse reveals a sharp increase in financial strain among employees managing caregiving responsibilities. Out-of-pocket caregiving costs have surged by 59% since 2021, reaching an annual average of $11,508 according to AARP. Consequently, the percentage of caregivers reporting high or overwhelming financial stress rose from 32.8% in 2024 to 42.8% in 2026. The impact is particularly heavy on the 'sandwich generation'—those caring for both children and parents—and affects workers across all income levels. Research indicates that caregiving duties often lead to reduced retirement contributions, increased debt, and early retirement. However, the report also notes that caregivers show a high responsiveness to employer-sponsored financial wellness programs, with 65% of stressed caregivers reporting improved financial stability after receiving professional guidance.
Topics: caregiving costs financial stress sandwich generation workforce demographics