National Alliance for Caregiving examines the financial impact of caregiving and the role of planning in protecting families from financial hardship
WASHINGTON, D.C. — More than 20 million Americans are experiencing multiple financial setbacks as a result of family caregiving, from depleted savings and mounting debt to delayed retirement and lost income, according to a new report from the National Alliance for Caregiving (NAC). The findings reveal how the financial consequences of caregiving can compound over time, creating a ripple effect that threatens families’ long-term financial security.
The report, Ripple Effects: Planning, Preparation, and Financial Well-Being Across Caregiving Families, examines the cumulative financial impacts of caregiving and the role of planning in helping families prepare for the costs of care. It finds that 28% of caregivers experience multiple financial setbacks when the person they care for has a plan for future care, compared with 46% when there is no plan. Yet only 43% of care recipients have a plan in place.
“Family caregivers are often absorbing the cost of care in ways that don’t show up on a receipt,” said Jason Resendez, President and CEO of the NAC. “They are drawing down savings, taking on debt, delaying retirement, and making difficult choices about work and family to ensure someone they love gets the care they need. Planning can help families prepare, but we cannot plan our way out of a system that leaves families to shoulder so much of the cost of long-term care. We need accessible planning tools, supportive workplaces, and stronger systems that make long-term care more affordable and sustainable.”
The report finds:
- Nearly half of caregivers (47%) experience at least one negative financial impact from caregiving, and 36%, or more than 20 million people, experience two or more.
- These impacts include stopped saving (31%), used up short-term savings (24%), took on more debt (23%), left bills unpaid or paid them late (20%).
- Caregivers are far less likely to report financial strain when the person they care for planned ahead (29% vs. 50%).
- Planning runs in families: 63% of caregivers whose loved one has a plan for future care have one of their own, compared with 35% when the care recipient has no plan.
- Families facing the greatest financial risk are the least likely to have plans. Just 31% of care recipients have a plan when their caregiver is under 35, compared with more than half when the caregiver is 50 or older. Young caregivers are also the most likely to report multiple financial impacts (44%).
The findings also point to a relationship between planning and financial outcomes. Planning tends to run in families: caregivers are nearly twice as likely to have their own plan when the person they care for has one. Among caregivers whose loved one has a plan in place, 28% report multiple financial impacts, compared with 46% when the care recipient does not have a plan.
The findings underscore an important distinction: planning matters, but families cannot plan their way out of the broader financial challenges of long-term care.
“Too often, families are forced to make complex care and financial decisions at the very moment they feel least prepared to make them,” said Samir Shah, CEO of CareScout. “Planning can’t eliminate the financial challenges of caregiving, but starting these conversations earlier can help families better understand their options and make more informed choices about the care they want and how they’ll pay for it.”
Families need better access to information and tools that help them have conversations about future care before a crisis occurs. Employers can help reduce the financial consequences of caregiving by providing meaningful workplace supports. And policymakers have a critical role to play in building a stronger system for financing long-term care—one that does not leave individual families to shoulder the burden alone.
This report was made possible through the generous support of Genworth | CareScout.
The report is available, here.
About the National Alliance for Caregiving
The National Alliance for Caregiving (NAC) is a catalyst for change, transforming how the United States recognizes, supports, and values the 63+ million family caregivers providing complex care. Through our nationally recognized caregiving research and advocacy, we drive policy, system, and culture change to elevate family caregivers as a national priority. We build partnerships across aging, disability, healthcare, philanthropy, and the private sector with the goal of making family caregiving more sustainable, equitable, and dignified. Learn more at caregiving.org.
About Genworth
Genworth Financial, Inc. (NYSE: GNW) is a publicly traded holding company headquartered in Richmond, Virginia. Through its family of brands—including CareScout, Genworth, and Enact—Genworth uses its more than 150 years of experience to help families navigate the aging journey with clarity and confidence, offering guidance, products, and services that support caregiving decisions, long-term care planning, and the financial challenges of aging.
About CareScout
CareScout helps older adults and their families navigate the aging journey and find quality care. Inspired by a mission to simplify and dignify the aging experience, we’re building an integrated ecosystem of care and funding solutions. To learn more about CareScout, visit www.CareScout.com. CareScout, LLC (CareScout) is a wholly owned, indirect, subsidiary of Genworth Financial, Inc. (NYSE: GNW).
Media Contact
Stephanie Fraser; stephanie@caregiving.org
National Alliance for Caregiving
