Caregiving impacts women’s ability to save for retirement

ST. LOUIS, Sept. 16, 2024 -- Half (48%) of American women in what's known as the "sandwich generation," or people who are caring for both children and parents or relatives, report feeling under financial strain according to new research from Edward Jones, in partnership with NEXT360 and Morning Consult.

The research set out to explore women's roles in their families and their finances, and the challenges that come from balancing both.

Nearly two-thirds of women (64%) in the sandwich generation report that caregiving duties have negatively impacted their ability to save for their financial goals. In addition, more than half (57%) of women have had to take on fewer professional responsibilities due to caregiving, resulting in a loss of potential income. Findings also showed the caregiving burden can impact women's personal health and sense of purpose.

"While many women want the choice and ability to have careers, be caregivers and be the CFO of their families, balancing the responsibilities of health, family, purpose, and finances have significant trade-offs," said Vanessa Okwuraiwe, Principal at Edward Jones. "Women can often bear the brunt of those responsibilities, including caring for loved ones, as half of all households in the U.S. are now headed by women."

In the study, almost half (46%) of women in the sandwich generation report being the sole caregiver for their children while 54% say the same for parents or relatives. Additionally, more than half (56%) say they feel like they do not have enough savings to support those for whom they are the primary caregiver. As such, over the next five years, women in the sandwich generation note they remain focused on saving and prioritizing long-term expenses such as caregiving (75%), child education (72%) and healthcare (81%).

While women report they are responsible for eighty-five percent of household spending decisions[2], far fewer women report the same for investment decisions. The research showed less than half (42%) have sole responsibility for investments in their households, and a quarter (26%) share that responsibility. Women cited the many demands they juggle daily as the cause for not stepping into the 'investment manager' role, with nearly two-thirds saying if they had more time (65%) with fewer caregiving responsibilities, and the help of a financial advisor (51%), they'd be more confident in planning for their financial future.

"Working with a financial professional can help women set their short- and long-term financial goals with a clear path to achieve them," said Mona Mahajan, Principal and Senior Investment Strategist at Edward Jones. "Women want a financial professional who gets them, guides them, and can make things easier. In fact, half of the women we spoke with said they believed working with a financial professional would help boost their financial confidence."

The top qualities women reported looking for in a financial professional are someone who understands their financial goals and priorities (64%), is transparent about fees and charges (58%), and has experience in financial markets (57%).

To learn more about this research, please visit https://www.edwardjones.com/us-en/market-news-insights/personal-finance/women-investors

 

Methodology

Edward Jones, in partnership with Morning Consult and NEXT360 Partners, LLC, conducted a mixed-methods study combining a nationwide online survey (fielded between June 18 – June 26, 2024) executed by Morning Consult (among a U.S. national sample of 5,998 adults reflecting the demographic profile of the United States) combined with interviews and discussion groups with 43 women between the ages of 25 and 71 conducted in June 2024 (interviews) and July 2024 (discussion groups).