Employee benefits
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The hidden workforce: How caregiving is reshaping work, well-being and retirement
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Published July 28, 2026, 5:30 a.m. EDT
5 Min Read
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As a mother of four and a caregiver to aging parents and loved ones with disabilities, I’ve experienced both the rewards and the strain of caring for others
. I’ve also been fortunate to have strong support from my employers — something many working caregivers don’t have.
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That gap is exactly why caregiving has quietly become one of the most powerful forces shaping today’s workforce, and yet, it often goes unseen and unspoken in traditional benefits strategies
.
But for millions of employees, it’s a central part of daily life. And it matters deeply: Research shows caregiving benefits can have as much, or even more, impact on employees than salary increases
Today, approximately 63 million Americans — 1 in 4 adults — have provided caregiving in the past year, a 45% increase since 2015, according to data from the National Alliance for Caregiving and AARP. Many are balancing full-time work while caring for children, aging parents, or both. In fact, nearly half of caregivers under age 50 are navigating life in the “sandwich” generation, and most say caregiving directly affects their work lives, the research found
For a growing share of employees, caregiving isn’t a short chapter. It’s an ongoing responsibility that shapes how they show up each day, how they engage at work, and how they think about the future
For employers, this is more than a well-being issue. Caregiving is a deeply human challenge that touches workforce stability, retention, and long-term retirement readiness
Caregiving’s impact extends beyond the workday
New data from Principal’s Work and Worth Survey, comprised of responses from 2,000 employed U.S. adults, highlights just how deeply caregiving responsibilities ripple through employees’ lives
Caregivers are nearly twice as likely to experience stress from work spilling into their home lives. And that strain shows up in very personal ways:
- 74% say caregiving impacts personal relationships
- 68% say it affects social connections
- 41% report reduced personal time
- 31% say their health is affected
These are not small tradeoffs — they’re everyday realities. And they don’t stay at home. They shape how employees show up at work, how long they stay, and whether they have the energy and clarity to focus on long-term financial goals.In fact, 60% of caregivers say unclear pay or career paths affect major life decisions, compared to 47% of non-caregivers. When so much already feels uncertain, clarity at work becomes even more important
The hidden impact on financial wellness and retirement
When daily responsibilities grow more demanding, it’s only natural that long-term priorities — like saving for retirement — get pushed aside.
Caregiver behaviors reflect this reality. According to the Employee Benefit Research Institute’s 2026 Retirement Confidence Survey:
- Caregivers are less likely to be saving for retirement (60% vs. 68%)
- They are less confident they will have enough money (53% vs. 66%)
- They carry higher levels of credit card and medical debt
- Many report they may need to delay retirement to age 70 or beyond — or indefinitely
Over time, these challenges can compound. Many caregivers enter retirement with fewer savings and face difficult choices, often relying on continued work or meaningful lifestyle adjustments just to stay financially stable.For employers focused on financial wellness and retirement readiness, this represents a critical blind spot: Employees cannot fully engage with long-term benefits if their immediate realities aren’t acknowledged and supported with care
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Targeted benefits drive measurable outcomes
The data also tells a hopeful story: when benefits reflect real life, they make a real difference
Caregiving-specific benefits are not just helpful, they’re impactful. Data from Principal’s Work and Worth Survey 2025 shows:
- Caregiving support improves employee well-being by 14%, slightly exceeding the impact of a salary increase (13%). “Well-being” reflects employees’ overall physical, emotional and social health.
- Employees with paid family care support are 20% more likely to stay with their employer
- Caregivers with financial support are 2.5x more likely to feel their benefits meet their needs
This points to an important shift. Employees aren’t just looking for more benefits, they’re looking for the right ones. They want support that acknowledges their lives beyond work and meets them where they are
When employees feel seen, understood and supported, something powerful happens: engagement deepens, loyalty grows, and financial confidence begins to rebuild
Employers — and policymakers — are starting to respond
There are encouraging signs of progress
At the policy level, lawmakers have reintroduced theImproving Retirement Security for Family Caregivers Act of 2026 and the Catching Up Family Caregivers Act of 2026. These efforts aim to help caregivers close retirement savings gaps, especially for women and middle-income households who are often the most affected
At the organizational level, employers are expanding their approach to caregiving support, looking beyond childcare to include:
- Elder care support
- Care navigation services
- Direct financial subsidies
In fact, 26% of companies plan to introduce or enhance caregiving benefits, according to the World Economic Forum.These steps reflect a growing understanding that caregiving is no longer a niche issue, but rather a defining part of today’s workforce experience
Read more: Employee financial wellness hits 4-year high, but employers miss key struggles
Rethinking benefits to reflect real life
For benefits and retirement leaders, the path forward is clear, but it requires a shift in perspective
Addressing caregiving isn’t just about adding a program. It’s about thoughtfully designing benefits that support employees across the full spectrum of their lives and responsibilities
Just as importantly, these efforts should connect to broader financial wellness strategies. Supporting employees during caregiving years helps prevent lasting disruptions in savings and retirement outcomes
Organizations that recognize and respond with empathy are better positioned to:
- Improve retention
- Strengthen workforce resilience
- Support long-term financial security
In a world where talent, well-being, and financial confidence are so deeply intertwined, caregiving may be one of the most important — and most human — opportunities employers have to make a lasting difference
Teresa Hassara
SVP of workplace savings and retirement solutions at Principal Financial Group
Teresa Hassara, SVP of workplace savings and retirement solutions at Principal Financial Group
