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56% of Americans providing unpaid care report early retirement
The Employee Benefits Research Institute found 34% of caregivers who work and 20% of retired caregivers financially support care recipients.
Yahoo Finance, citing a new Employee Benefits Research Institute report, says early retirement is becoming common for unpaid caregivers, with 56% of caregivers facing the reality of stepping back from work. The report also finds nearly three in 10 Americans ages 25 and older are unpaid caregivers.
According to the EBRI research, 34% of working caregivers and 20% of retired caregivers financially support their care recipients. The outlet reports that this financial burden can overlap with costs for the “sandwich generation,” leaving caregivers with less money to manage their own finances.
Yahoo Finance adds that caregivers often reduce work hours or retire early, which can limit contributions to workplace retirement plans because of lost wages and reduced time to save, even when a 401(k) is available. For retired caregivers, the report says savings can run down and many may turn to debt.
The article also points to Social Security as an insufficient backstop, citing a Bipartisan Policy Center warning that the program’s primary trust fund is projected to be exhausted by 2032, with benefits expected to face a 22% cut. It ties the pressure on benefits to a decline in workers per beneficiary, from 5 in 1960 to 2.9 today, according to the outlet.