According to Bank of America’s 2024 Workplace Benefits Report, 52% of the workforce identify as caregivers. Employees balancing their job duties with the demanding responsibilities of caring for a family member face several significant challenges. These challenges can impact their work performance, career progression, financial wellness and retirement confidence. Key challenges include:
Time Management. Balancing work hours with caregiving duties often leads to stress and exhaustion. In addition, unpredictable caregiving schedules can lead to absenteeism or reduced work hours.
Career Impact. Caregivers may have to take leaves of absence, work part-time or accept lower-paying jobs to accommodate caregiving responsibilities. Career progression can be hindered due to less availability for training, networking and advancement opportunities.
Financial Stress. Direct costs of caregiving (e.g., medical bills and special equipment) combined with reduced income can lead to significant financial stress. Many caregivers dip into their savings or take on debt to manage expenses, jeopardizing their financial stability and retirement savings.
Health Issues. The physical and emotional toll of caregiving can lead to health problems, increasing personal healthcare costs and reducing productivity at work.
Taking Care of the Caregivers
To help support employee caregivers, employers may want to consider offering the following:
- Flexible scheduling, remote work and part-time options
- Leave of absence or sick days to give care to family members
- Legal services, health savings accounts and flexible spending accounts
- Employee assistance programs such as counseling or support groups
- Automatic retirement plan enrollment and escalation, with a competitive employer match
- Targeted financial education on topics such as building an emergency fund, managing credit card debt, balancing expense management with retirement planning and estate planning basics.
The Bank of America survey notes that some workers are not comfortable with self-identifying as caregivers. Top reasons include a perception they aren’t committed to doing their job (47%); are concerned that their manager or co-workers will treat them differently (26%); and fear that they will be passed over for a promotion or opportunity (22%). Employers are encouraged to provide training to facilitate a culture of support for caregivers in the workplace and to help diminish the stigma around caregiving.
Informational Resources: Bank of America’s 2024 Workplace Benefits Report; AARP: “How Caregiving Affects Your Workforce.”
For personalized advice on optimizing your retirement plan and strategies to maximize the benefits, don’t hesitate to reach out.
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Joe Trybula, CFP®, QPFC®
ACCREDITED INVESTMENT FIDUCIARY™
joe@diversifiedfa.com
800-307-0376
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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