More than 32 million Americans are quietly financing the care of aging relatives, and a new study from Edward Jones suggests many are doing so at the expense of their own retirement security. The research, conducted with Age Wave and The Harris Poll, found that 81% of financial caregivers to adults 65 and older are willing to reduce their own financial security to support their loved ones.
Yet 87% of the same group say they do not want to become a caregiving burden on their own families, a contradiction the report's authors call a “generosity paradox.” The survey, which ran from May 13 to June 9, polled 3,223 U.S. adults who provide financial care to older adults or to adults 18 to 64 with disabilities.
Out-of-pocket costs add up
Nine in 10 financial caregivers spend their own money on a care recipient, even though only 57% describe themselves as financial contributors. Among the 84% who are not fully reimbursed, out-of-pocket spending averages $8,737 a year, totaling $235 billion annually across this group, according to Edward Jones.
The financial burden escalates when the care recipient runs short of funds. Caregivers whose recipients lack sufficient resources spend an average of $12,863 a year, compared to $7,640 when the recipient is well funded. Additionally, one in five caregivers said the person in their care had been a victim of financial fraud in the past five years, and in those cases, spending averages $10,583.
Beyond money, caregivers give up an average of 109 hours a month—about 3.6 hours a day. Nearly three-quarters of financial caregivers also hold jobs, and 46% support children simultaneously. “Caregiving often becomes a financial responsibility before families have fully discussed what support may be needed or who will provide it,” said Ken Cella, principal and head of external affairs at Edward Jones.
Giving where it hurts
Nearly half of financial caregivers (49%) report making personal financial sacrifices. Among them, 38% stopped or reduced saving, 26% drew on non-retirement savings, and 20% tapped retirement accounts. Careers suffer too: 24% took unpaid leave, 22% passed up a career opportunity or promotion, and 19% stopped working entirely.
Younger caregivers are hit harder, with 58% of those under 40 reporting financial sacrifices, compared to 32% of those 60 and older. Women also carry an outsized load, reporting an average of 118 hours of caregiving per month versus 98 for men. They are more likely to have stopped or cut back on saving (42% vs. 35% of men) and report less confidence about funding retirement and long-term care (71% vs. 84% of men).
The emotional toll
Some 72% of financial caregivers said caregiving is more stressful than expected, 56% feel overwhelmed, and 43% say it has hurt their own health. Caregivers to younger adults with disabilities report heavier strain, with 63% saying caregiving has harmed their health, compared to 43% for those caring for older adults. Still, 85% said the role gives them a sense of purpose.
“Caregiving is filled with contradictions. It can be stressful, expensive, and overwhelming, while also being one of the most meaningful roles a person takes on,” said Ken Dychtwald, chief executive of Age Wave.
Other research by Aeroflow Urology points the same way. In a survey of more than 1,100 family caregivers this year, 77% feel financially overwhelmed, more than half had cut their work hours, and 11% had to quit their jobs to provide care. According to an AARP estimate, the total economic cost of unpaid caregiving has ballooned past $1 trillion annually. More than four in 10 caregivers also pointed to isolation as their greatest source of emotional strain, and nearly three-quarters have to balance unpaid care with outside employment for more than five years.
Advisors may want to consider how these dynamics affect their clients' retirement plans. As retirement assets hit $51.2 trillion, the focus is shifting to spending strategies that account for caregiving costs. Additionally, LIMRA finds 60% of pre-retirees skip advisors, yet 88% worry about retirement income—a gap that caregiving responsibilities may widen.
