Hidden Costs of Caregiving: They Go Beyond Financial Issues

A daughter pushes her mom's wheelchair as they go for a walk.

(Image credit: Getty Images)

published 7 July 2025

It's no secret that the United States ranks near the bottom of high-income countries when it comes to caregiver support policies.

What is less known is the emotional, social and financial toll it takes on the 2 in 5 Americans who identify as family caregivers, according to a recent study conducted by Edward Jones in collaboration with Morning Consult and Age Wave.*

Caregiving can be both fulfilling and rewarding, according to 80% of the caregivers who participated in the study.

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However, it's also a significant emotional responsibility, especially when it falls to one person.

For example, those caring for aging adults are often managing household tasks, providing emotional support and assisting with medical and financial needs while also maintaining their own households and caring for their children.

It is little wonder that these caregivers, whose responsibilities frequently exceed their capacity, are also stressed (83%), burnt out (77%) and, in some cases, experiencing symptoms of depression (60%).

Overburdened caregivers also find it harder to prioritize their personal health and well-being (67%) over the loved ones in their care.

Financial impact

Half of those caring for aging adults are ages 30 to 64, a life stage that coincides with peak career demands and earning potential.

Unfortunately, with little to no federal or employer support, overwhelmed caregivers often make risky financial decisions that can jeopardize their own financial wellness and retirement security to ensure proper care for their loved ones. According to our study:

25% of caregivers stopped working completely
24% reduced their work hours or took leave from work
18% reduced contributions to their retirement accounts
10% passed up career-advancement opportunities

The costs of unsupported care are also causing caregivers to dip into their own pockets, with 29% of study participants reporting they incurred out-of-pocket expenses in caring for aging adults.

According to an AARP report, caregivers spend an average of $7,242 per year out of pocket for caregiving-related costs, including expenses for home modifications, medical supplies, transportation and paid help.

When it comes to out-of-pocket costs for quality childcare, Americans pay some of the highest prices in the world.

In the face of these financial headwinds, it's easy to understand why the top financial concerns caregivers say they face include rising costs and inflation (56%) and inadequate retirement savings (42%).

Support from an unexpected resource

While it might seem counterintuitive, a financial adviser is the most versatile expert a caregiver can have in their support circle. They can connect a caregiver with a roster of professionals to address both financial and emotional needs, including health care experts, therapists and social workers.

By taking a holistic approach, financial advisers are able to help caregivers navigate the complex realities of care while planning for long-term stability and well-being.

One of the greatest fears of aging for most of us is becoming a burden on our children.

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That sentiment was validated by 86% of the respondents in the study. The top reason caregivers, particularly those caring for aging adults, seek professional financial advice is to prepare for their own future care.

While more than half of caregivers reported not working with a financial adviser, those who do reported being more confident in their financial future, according to the study.

Bipartisan support for caregiving

More than two-thirds of Americans (68%), regardless of political affiliation, say the government is not doing enough to support caregivers.

Further, the research found that Americans support enacting legislation that would aid caregivers, with more than three-fourths of both Republicans and Democrats in favor of such policies.

In addition to stronger, more consistent government support, 3 in 4 adults (74%) believe employers should offer such benefits as financial support or flexible work arrangements for employees with caregiving responsibilities.

This is particularly supported by caregivers of children under age 18.

At Edward Jones, we wholeheartedly agree. That's why we strongly support the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act.

The goal of this bipartisan legislation is to mitigate the long-term financial impact on caregiver financial security by offering enhanced retirement savings opportunities for unpaid or underemployed family caregivers.

How caregivers can take action

If caregiving touches your life or the life of someone you love, take action today.

Start by creating a plan — don't wait for a crisis to force your hand.

Have honest conversations with your loved ones, especially aging parents, about their needs and wishes.

Understand the financial realities of caregiving and take steps to prepare, including building an emergency savings account to handle the unexpected.

Your proactive choices today can make all the difference tomorrow.

To learn more about this research, visit www.edwardjones.com/caregiving.

* For the purpose of this study, caregivers are defined as those caring for children under 18, those caring for children or adult children with special needs, and those caring for aging parents, in-laws or other relatives or friends 65 or older.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Vanessa Okwuraiwe is a principal at Edward Jones where she is part of the strategic leadership team that helps the firm achieve its goal of being a place of belonging for all and to fulfill its purpose of making a meaningful impact in the lives of clients, associates and communities. She is a thought leader in Financial Wellness with a focus on building financial resilience across all communities.