Yahoo Finance
For the past decade, Brian and Rose Armstrong have been full-time caregivers for their grandson, now 11.
The financial toll on their retirement savings is a grim reality for the 66-year-old Mount Laurel, N.J., residents, who retired two years ago.
Folks like the Armstrongs, who are caregiving for an aging parent, spouse, or other family member, face greater financial strain, lower retirement confidence, and more worry about the future — and millions of people are in that boat.
A staggering 63 million Americans — nearly 1 in 4 adults — provide unpaid care to an adult with health or functional needs or to a child with a serious medical condition or disability, according to AARP.
People often have little choice, but there are financial repercussions for retirement — especially one that can span three decades or more.
"Caregiving is often discussed as a family, health, or workplace issue, but this research shows it is also an important retirement security issue," said Craig Copeland, director of wealth benefits research at Employee Benefit Research Institute (EBRI), which publishednew findings.
"The big issue is that if you're not yet retired, caregiving can take time away from work, which then can prevent you from building up your savings," he said.
"And you're also more likely to retire earlier than you expect — even if your retirement savings were on track to that point, that's going to really put you at a disadvantage when it comes to your retirement finances." A large percentage of retirees, regardless of whether they are caregivers, leave the workforce earlier than planned.
The three biggest reasons are their own health, a job loss, or caregiving for a family member.
Caregivers are more likely to retire earlier than planned because of their responsibilities, while non-caregivers often quit because they were offered an early retirement package from their employer, per the data.
Meanwhile, more than 6 in 10 caregivers are female, according to the research.
"Women face many hurdles that threaten their retirement security — they live longer than their male counterparts, and they need more income to cover those years," Cindy Hounsell, founder and president of theWomen's Institute for a Secure Retirement, told Yahoo Finance.
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