The reality is that most family caregivers are women.

If you’re a caregiver, whether for an aging parent, an adult or a child, that time spent taking care of others impacts your ability to save for retirement. And if you’re raising children while caring for elderly parents, you’re the sandwich generation and are stretched even more.

Many caregivers put personal time and needs last; sacrifice or curtail retirement savings; and delay or forgo necessary purchases.

Taking care of others affects finances as well as emotional, mental, and/or physical well-being. Four out of five caregivers experience increased anxiety or stress because of their dual roles working and caregiving, according to Voya Cares. Most report using sick, personal, or vacation time to provide care.

About 1.4 million Michiganders ─ more than 13% of the state’s population ─ serve as uncompensated caregivers for relatives and spend an average of $7,000 annually on healthcare equipment, residential modifications, and transportation to medical appointments among other related costs, according to AARP Michigan and AARP Policy Institute. 

Caregivers report cutting back on work (56%), leaving one job for another (31%), or quitting entirely (22%), Voya Cares reports. About eight in 10 caregivers have routine out-of-pocket care-related expenses; and caregivers spend, on average, 26% of their income on caretaking activities, according to a 2021 study by AARP and the National Alliance for Caregiving.

As a caregiver, you’re doing everything you can for your loved ones. Make sure you also take time to take steps to secure your future.

To help you, Voya Financial offers prudent suggestions for caregivers:

• Create a realistic budget for you and your loved ones.
• Don’t leave a job or cut back hours or take out loans until you consider everything, including specialized planning.
• Maximize resources for you and those you’re taking care of.
• Utilize the pre-tax savings advantages of a health savings account (HSA).

Voya Financial’s Voya Cares program offers caregivers extensive resources, including with financial planning, support, and guidance.

Helping you along your retirement journey

Upcoming topics
• Taking out loans. Taking a loan from your 401(k) reduces your income in retirement.
• Start where you are. No matter your age, it’s never too late to save.
• Social Security. What does it mean for me? When is the right time to apply?

Past topics
• Saving wisely, budgeting to save, and having monetary goals.
• Investing in yourself: financial advisors, creating better saving habits, more.
• Saver's tax credit: tax savings for those who need it most.
• Retirement catch-up: IRS catch-up contributions, with system-specific content.
• Deciding your retirement age, getting ready for retirement.

Find this information and more on the Michigan Office of Retirement Services’ Women & Retirement website.