Caregiving Costs Jumped 59%. Here's What's Happening to Workers Caring for Family Members

Financial Finesse finds financial stress among employees caring for elderly parents or other family members jumped roughly 30% since 2024, but that same group is also the most likely to recover when they get help.

EL SEGUNDO, Calif., Nov. 12, 2026 /PRNewswire/ -- Last month, AARP found that family caregivers spend an average of $11,508 a year out of pocket, up 59% since 2021. Now, new data from Financial Finesse shows what's happening to the employees caring for family while holding down a job: their financial stress is climbing, and fast.

Financial Finesse compares employees who self-report that they are caring for elderly parents or other family members, the sandwich generation caring for both children and parents, employees caring for children, and employees with no dependents. Among these employees, the share reporting high or overwhelming financial stress climbed from 32.8% in 2024 to 42.8% in 2026, a 10-point jump. Specifically, sandwich-generation employees, caring for kids and parents at once, rose from 33.5% to 41.5%. Among employees with no dependents, the figure was 28.8% in 2026. Stress rose in every group, including employees with no dependents, but caregivers started higher and rose further.

The findings suggest caregivers represent a cohort particularly vulnerable to financial stress, strain and workplace distraction, but also one of the most responsive to timely financial guidance.

Financial Finesse reaches millions of employees at more than 20,000 organizations. Its findings draw on survey responses from 134,144 employees. The findings highlight growing financial strain among caregivers as caregiving costs outpace inflation, according to AARP.

"The call rarely starts with 'I'm a caregiver.' It starts with 'I stopped my 401(k) contributions and I feel sick about it,' or 'I don't know how to talk to my siblings about money for Mom,'" said Scott Stark, CFP®, Think Tank Director and Financial Coach at Financial Finesse. "These are often people who are good with money. They just never planned for this."

The 2026 Retirement Confidence Survey from EBRI and Greenwald Research echoes Stark's real-life coaching experiences. It found 19% of caregiving workers had reduced retirement contributions because of caregiving, 20% took on new debt, and 24% borrowed from family or friends. And 56% of retired caregivers stopped working earlier than they planned, compared with 44% of other retirees.

More income doesn't make it go away
Caregiving strain cuts across pay levels. In the same survey, 32% of caregivers earning $75,000 or more lacked confidence in a comfortable retirement, compared with 23% of non-caregivers at the same income. Among those earning under $35,000, the gap was 75% versus 55%.

The most stressed group bounced back best
The Financial Finesse data also carries good news. Among employees caring for elderly parents or other family members who started with high or overwhelming financial stress and then worked with their employer's financial wellness program between 2021 and 2025, 65% moved to some or no stress. That was the highest rate of any group, ahead of the 61% recorded for employees with no dependents.

"When caregivers get help identifying their next steps—protecting their 401(k) match, building an emergency fund or understanding what Medicare covers for Mom—their stress eases," said Liz Davidson, who founded Financial Finesse in 1999 to help everyday workers navigate challenges like these with greater clarity. "This isn't a budgeting problem. It's a slow-moving family emergency that calls on employers to be there when real life happens."

Caregivers value that kind of help, but many are still piecing it together on their own. In the 2026 Retirement Confidence Survey, caregivers were more likely than other workers to rely on family, friends and their own online research for retirement planning. Among workers offered a retirement plan, more personalized financial guidance was the only one of the six most-valued plan improvements that caregivers cited more often than non-caregivers.

What employers can do now
Most employers aren't there yet. In EBRI's 2025 employer survey, 38% offered elder care services and 37% offered caregiving education, though nearly half planned to add each. Meanwhile, nearly two-thirds of working caregivers report at least one significant change to their work life because of caregiving, such as taking time off or changing their hours, according to AARP's new study.

Financial Finesse recommends reaching caregivers at the moments the responsibility shows up:

• Medicare open enrollment (through Dec. 7): a natural moment to reach employees helping a parent choose coverage.
• Life-event changes: a new dependent on a W-4 or benefits form, or a request for leave or a flexible schedule.

"Our data shows financial wellness programs work for caregivers as well as for anyone," said Stark. "What employers control is timing. For example, help that shows up when someone first adds a parent to their benefits. Wait a year, and the strain has had a year to compound."

The full report, The Caregiver Squeeze, is available at The Caregiver Squeeze - Financial Finesse.

Methodology
Financial Finesse's findings are based on self-reported data from 134,144 U.S. employees surveyed between 2024 and 2026, with financial stress measured before program engagement. Financial wellness improvement data covers 2021–2025. Additional findings are drawn from research by EBRI, Greenwald Research, and AARP. Financial Finesse was among the organizations that funded EBRI's 2025 Financial Wellbeing Employer Survey. Full methodology is available in the report.

About Financial Finesse
Financial Finesse is the leading independent global provider of unbiased financial coaching as an employee benefit, driving measurable improvements in employee financial wellness and proven employer ROI. Employees receive unlimited access to certified financial coaches, CFP® professionals or in-country equivalents, and AI-powered guidance that expands reach and personalization with trusted human oversight at every step.

Serving more than 20,000 organizations and reaching millions of employees worldwide through a single integrated platform, Financial Finesse delivers localized experiences tailored to each employee's country, language, culture, financial system, and benefits. The result: reduced financial stress, seamless scalability for employers, and a benefit employees trust, value, and actively use. Learn more at financialfinesse.com.

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SOURCE Financial Finesse