The retirement impacts of caregiving (often four years out of the workforce) can be significant:

• Retirement savings can be 18% lower as a result of a four-year break in employment
• Twice as likely to report that managing retirement savings is "very stressful"
• 57% expect to delay retirement by more than one year, versus 45% of non-caregivers

Caregivers reported considerably greater impacts from the financial vortex:

Caregivers reported being more vulnerable to financial shocks: 63% experienced a hardship that stopped them from saving for retirement, versus 29% for others; 59% have taken a withdrawal from retirement savings upon a job change, against 35% of others; and 70% have less than three months of emergency savings, compared to 60% for non-caregivers.

Yet despite headwinds, caregivers reported remaining focused and resilient, with 67% expecting to meet their retirement goals. Surprisingly, they are more likely to report their retirement savings are ahead of schedule (37% v. 24%), and that savings are a top priority (38% v. 33%).

Help, advice and support

While 95% of retirement savers viewed financial help (education or advice) as important, caregivers more frequently reported it "extremely important" (30% v. 19% of others).

Asked about the most important aspects of a retirement plan, caregivers were more focused on household level advice: building an investment strategy across all retirement accounts; incorporating spouses' retirement savings to build household level plans; and having an assumption for how long they will live.

While 47% of those surveyed reported managing retirement savings on their own, there are differences as to why they chose to do so. Non-caregivers care more about lower costs and control over their assets, but caregivers view advisory services as too cookie cutter and place higher priority on building strategies across all investment accounts.

This highlights the need to help caregivers navigate competing financial priorities and create personalized retirement strategies combining multiple retirement accounts and other savings.

The good news is corporations have stepped up caregiving resources. As the recently released Goldman Sachs Ayco Benefits Survey shows, from 2020 to 2023, there was a 177% increase in companies offering child and elder care assistance, 120% growth in critical illness benefits, and 152% in hospital indemnity.

During the global COVID-19 pandemic, companies broadly expanded caregiving leave policies, recognizing that employees should not have to choose between financial stability and caregiving.

Related: Demos of sandwich generation shift, though (long-term) financial challenges remain

As the importance of caregiving resources continues to rise, many companies are enhancing their resources to help employees balance personal and professional responsibility. Personalized planning solutions, such as managed accounts, can help manage unique financial situations so temporary setbacks do not become permanent. When retirement savings fall behind, caregivers often need help in making saving and investment adjustments to bring them back on track.

Chris Ceder is Senior Retirement Strategist at Goldman Sachs Asset Management Division focused on developing retirement and financial wellness client strategies as well as providing thought leadership materials for advisors and clients.