Employees are
According to the Alliance for Lifetime Income's 2025 Protected Retirement Income and Planning (PRIP) Study, a growing share of workers are diverting money from their own savings to support adult children, aging parents or other relatives. Seventeen percent of respondents provide financial help to adult children, while 10% support grandchildren and
When faced with financial strain, most people say they'd rather sacrifice their own comfort than cut off family assistance. Nearly six in ten would lower their standard of living, 54% would return to work and 21% would skip medical care before reducing financial help to family members. Only 15% said they'd be willing to stop that support.
Read more:
"Caregiving and family financial commitments should always be part of the retirement planning conversation," Jean Chatzky, education fellow at the Retirement Income Institute, said in a release. Yet only 28% of consumers have ever discussed caregiving responsibilities with a financial professional, PRIP's data found.
Healthcare and long-term care costs emerge as top retirement concerns
Healthcare costs now rival inflation as the top financial concern for retirees, cited by 60% of respondents. A major physical health event and the loss of physical or cognitive independence are also major quality-of-life fears. Despite these worries, only 32% of Americans have contingency plans for cognitive decline, and just one-third feel confident in their ability to provide care for a spouse.
Both consumers and financial professionals say estimating healthcare expenses is the single hardest part of retirement planning, followed by prioritizing spending and sequencing withdrawals.
Read more:
Gen-X workers are most vulnerable
As the oldest members of Generation X reach age 60, many feel unprepared for retirement. Only 41% of
"Gen-Xers are the first generation to retire largely without pensions," Jason Fichtner, executive director of the Retirement Income Institute, said in the release. "That means planning for steady income — often through annuities — will be even more important."
The study found that 69% of Gen X respondents would choose an annuity over investing in the stock market if given $100,000, compared with 58% of boomers. Financial professionals are responding accordingly: Half report increasing client investments in annuities, as total U.S. annuity sales reached a record $119.5 billion in the second quarter of 2025.
For benefit leaders, the findings highlight the growing overlap between financial wellness, caregiving and healthcare planning. Employees who are stretched thin supporting family may struggle to save for retirement or manage their own medical needs.
Read more:
Employers can help by encouraging conversations about caregiving and long-term care in financial education programs, as well as offering flexible benefits or voluntary insurance options that support both elder and dependent care. Additionally, access to retirement income tools, including annuities and guaranteed income options should also be considered in a comprehensive retirement benefits package.
By addressing these pressures proactively, employers can support workers' holistic financial health — and help prevent family obligations from derailing long-term retirement readiness.
"It's one thing to provide financial support to family when you can afford to do so, but it's a whole new level of commitment and sacrifice to keep doing it while risking your own future financial security or physical health," Chatzky said. "It's clear people feel very strongly about keeping these promises regardless of the cost to themselves."
