How Women Can Keep Caregiving From Draining Them Financially
Balancing daily life with planning for the future can be challenging — and today’s volatile and uncertain economic conditions don’t make it any easier.
For female investors, this juggling act can be even more complicated as we face a multitude of unique challenges, including living longer, facing higher health care costs and raising families while caring for aging parents.
In fact, according to the National Institutes of Health, female family members — mostly wives and daughters — provide the majority of home-based caregiving for older people, and with 12,000 Baby Boomers turning 65 every day, the demand for caregiving among American families will only grow.
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.
Although caregiving duties can be rewarding, they also come with financial impacts, causing some women investors to fall behind on their retirement savings goals.
According to a new survey from the Nationwide Retirement Institute, 67% of female investors who support children or aging parents say their careers have been impacted by caregiving responsibilities, with 18% saying caregiving duties have prevented them from saving for retirement.
It’s a journey
Balancing caregiving and saving for retirement is a journey, and it’s understandable why some women are struggling with finding the right balance.
However, with careful long-term planning and the right resources, women can secure a comfortable future for themselves while still supporting their loved ones.
I recommend you consider the advice you receive every time you board an airplane: Be sure to put the oxygen mask on yourself before helping others.
While placing the needs of your loved ones before your own is an admirable trait, it’s hard to be your best for your family when you’re preoccupied with your own financial stress — and no one wants to become a financial burden to their loved ones when they reach retirement.
Here are some steps women can take now to prioritize their financial security while still addressing caregiving demands.
1. Create a financial plan
Start by assessing your current financial situation and setting clear retirement goals, prioritizing your financial security before addressing caregiving financial pressures.
Document all sources of income, list any outstanding debts and identify your assets. Outline your vision for retirement, specifying your desired retirement age and the type of lifestyle you want to maintain. Develop a budget that includes a savings target and expenses you may be able to reduce.
If you can’t save as much as you’d like, especially while you’re caring for others, that’s OK. Investing does not have to be an all-or-nothing proposition.
If you can, at least try to make sure you are maximizing benefits from your workplace retirement plan — particularly leveraging any matching contributions your company may offer.
Once you get this framework in place, you’re off to a good start. The next step is to find someone who can help you take it to the next level — which is where finding a good financial professional comes into play.
2. Find a trusted financial professional
Finding a good adviser or financial professional requires trust. Seek out an adviser who creates a non-judgmental space for you to ask questions and address your concerns.
Get specific. Find out what services they provide and what types of clients they serve. If possible, ask friends and family for a trusted recommendation, or turn to other women in your life for help identifying advisers who have a strong track record serving female clients.
You can also use sources like the National Association of Personal Financial Advisors, the CFP Board or even Nationwide to help find financial professionals who fit your needs.
Look for financial professionals who do more than just manage your portfolio; you want someone who offers holistic planning.
This includes long-term care planning, estate planning, risk management, tax planning and overseeing your insurance needs to provide protection in an uncertain environment — and help you remain focused on your long-term goals.
Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.
It’s also OK to try out different advisers. If you find one who doesn’t understand your goals, move on and find one who does.
If you feel you can’t afford to work with a financial professional, explore resources offered by your employer-sponsored retirement plan. Many plans offer tools, calculators and professional advice at no or minimal cost.
Remember, the short-term cost of getting good financial guidance is one of the smartest investments you can make.
I know this firsthand, as I watched my parents plan their retirement while simultaneously operating our family farm. Without the help of a financial professional, they wouldn’t have had the confidence to step back from farming.
Their adviser helped them manage land transfer and estate taxes while addressing their goals and dreams for retirement.
3. Stay informed and flexible
Life circumstances can change, and staying informed will help you make the best decisions for your future:
- Keep up with financial and economic news and be prepared to adjust your plan as needed. However, be careful about checking account balances daily or making emotional decisions based on short-term news cycles, as this can be detrimental to your long-term plans. Instead, schedule regular reviews and check-ins with your adviser to review your plan and make adjustments with their guidance.
- Network within your community.
- Participate in online forums, social media groups or local meetups focused on financial planning and retirement to share experiences and advice.
- Connect with other caregivers who are on the same journey; this can be a great resource for tips on balancing caregiving and financial planning.
It’s natural for female investors, who frequently act as primary caregivers for their families, to find the current economic climate and the responsibilities of caring for their loved ones to be demanding.
However, by building a holistic plan with an adviser or by leveraging resources from your employer-sponsored retirement plan, women can address the risk of allowing near-term family obligations to jeopardize their long-term financial security.
NFM-24810AO 05/2025
Related Content
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
Source link
