Unpaid Caregivers Soon May Get Help to Save for Retirement

Two proposed bills aim to open new doors to caregivers for contributing to Roth IRAs and making catch-up retirement contributions.

Roughly half of U.S. adults care for a child, parent or other relative; that’s more than 53 million caregivers, according to a report on caregiving in America. As the country ages and as more individuals provide care to both aging parents and growing children at the same time, this number will only grow.

Caregivers routinely make significant personal and professional sacrifices, including stepping out of the workforce or moving from full-time to part-time work. Because of this, it’s no surprise that caregiving for loved ones can have a significant negative impact on savings and retirement readiness. The estimated economic value of uncompensated family caregiving was $600 billion in 2021, the AARP estimates. That’s up from $470 billion in AARP’s previous study in 2017.

At Edward Jones, we believe it is imperative to create additional savings opportunities for caregivers to help address these financial challenges. We strongly support the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, sponsored by Sens. Susan Collins, R-Maine, and Mark Warner, D-Va., and Reps. Brittany Pettersen, D-Colo., and Maria Elvira Salazar, R-Fla., to help the millions of Americans who provide caregiving services to family and friends.