Smart moves that protect your future

The financial impact of being a carer

In 2025, 63 million Americans — nearly one in four adults — will be caregivers to a family member with a disability or medical condition. If you’re among them, you already know how quickly the emotional weight of caregiving can turn into financial stress. Nearly half of caregivers reported that caregiving had a negative impact on their finances, including pausing savings, using emergency funds, or taking on debt, according to AARP.

These stresses can quietly build up over time, making it difficult to keep your long-term plans on track. Before you start making decisions out of urgency or guilt, it’s helpful to understand how caregiving changes your cash flow, saving habits, and retirement timeline. This awareness is a great place to start, as it gives you a clearer view of what support you can provide sustainably while still protecting your future.

Steps to protect — or rebuild — your retirement savings

To protect your retirement savings, you’ll need to stay focused on your goals and do what you can to avoid early withdrawal, said Stu Bradley, a wealth advisor at Hightower in St. Louis. One smart step is to create a simple overview of the income, expenses and resources available to you and the person you are caring for. This allows you to see what you can contribute sustainably without jeopardizing your future.

Once you have that picture, Bradley recommends agreeing on clear expectations with your loved one or family members, ideally in writing. “Continue to track your retirement contributions and expected retirement age so you can see early if caregiving is pushing you off course, and then adapt before a crisis occurs,” he said.

Understanding cash flow calculations also helps you identify any upcoming expenses — such as medical bills, home modifications, or in-home support — as well as any benefits your loved one may already be eligible for, such as long-term care coverage. As you identify those expenses and resources, you’ll also get a better read on whether your retirement contributions will be able to stick.

Once you understand the full financial picture, you can consider options for covering costs in the near term. While “you can’t borrow for your retirement, you can borrow for expenses that happen now,” Bradley said, which means it may be worth comparing personal loans, APR credit cards for medical purchases, or medical payment plans if you need short-term flexibility.

If you find that caregiving limits what you can save, focus on keeping your plan moving in smaller ways — like keeping retirement contributions modest instead of stopping altogether, or directing extra money once a month to a high-yield savings account.

How to stay on track in the long term

Spending wisely as a caregiver can help protect your retirement funds and keep you on track toward your long-term goals. Some of the biggest immediate savings can come from avoiding unnecessary purchases.

One way to reduce this stress is to turn to your community for home medical equipment. Before purchasing medical equipment such as wheelchairs, walkers or shower chairs, Bradley suggests checking places like local medical equipment loan vaults; Churches, synagogues or senior centers providing donated equipment; and neighborhood stands or senior center bulletin boards where families often give away gently used items. These alternatives can save you hundreds of dollars per item.

In addition to cutting expenses, it also helps build some long-term planning habits. A six-month check-in of your expected retirement age, current contribution levels, and overall budget can show whether caregiving changes your schedule — and gives you time to adjust. An annual review of your Medicare, Medicaid, and long-term care benefits can also ensure your loved ones are receiving all available support, which can free up space in your own budget.

Signs it’s time to provide extra help

Not only does sharing the burden relieve financial stress, it can help caregivers feel resourceful and feel less alone, Bradley said. It may be time to bring in reinforcements if you’re experiencing any of these situations:

• You are considering moving a parent into your home or leaving a job to provide care
• You’re not sure how to deal with Medicare, Medicaid, or long-term care rules
• Family members disagree about money or caregiving roles

Noticing these pressure points early can make it easier to bring in support before the situation becomes overwhelming.

Where to go for support

As you evaluate your options, Bradley recommends a few places that can help you navigate the financial and logistical aspects of caregiving:

• An agency focused on aging in your local area
• Senior Attorneys for Powers of Attorney, Asset Protection and Benefits Planning
• Aged care managers or social workers who can coordinate services
• Nonprofit caregiver support groups and hotlines
• A financial planner can design different caregiving scenarios

Beyond the financial steps, emotional resilience is just as important. To maintain a positive mindset, Bradley recommends “noting dissatisfaction or panic when they arise and choosing not to let those states dictate hasty financial promises—like ‘I’ll pay for everything myself’—that can jeopardize your retirement.”

Caregiving can bring up feelings of love, frustration, guilt and financial stress all at once, Bradley said, and suggested rephrasing it: “You’re one person doing the best you can with limited time and money.” Keeping this balance in mind can help you support your loved one without losing sight of your long-term security.