By 2035, 78 million Americans will be 65 or older. This aging population will require an elder care support system positioned to meet this growing demand.
Rising healthcare costs, limited government funding, and a shortage of professional caregivers are forcing employees to take on more responsibility for caring for aging loved ones. These employees are often left to navigate complex care decisions without guidance, such as understanding Medicare or making choices about long-term care.
Without the right support in place, employees balancing caregiving and work responsibilities experience higher stress, more unplanned absences, and increased risk of burnout, turnover, and productivity loss.
How can HR and benefits leaders evolve their approach to elder care benefits to better support employees caring for aging loved ones while maintaining productivity and workforce stability?
In this article, we break down common elder care benefits, why they matter for your workforce, and what to consider when building or improving support for working caregivers.
What are elder care benefits for employees?
For employees, senior caregiving means managing day-to-day responsibilities like preparing meals, coordinating transportation, and attending medical appointments alongside full-time work. As their loved one(s) age, care needs become more complex and require more time and coordination.
Elder care benefits such as flexible work options, backup care, and access to caregiving resources help employees manage these responsibilities more effectively, reducing disruptions and supporting productivity and retention.
How to choose the right elder care benefits
Start by identifying where caregiving most disrupts employees, then prioritize solutions that simplify decision-making and provide clear guidance.
- Backup care – This benefit offers a reliable short-term option when care plans change, like a home health aide canceling or a facility closing unexpectedly. Employees can quickly arrange care and get reimbursed, helping them avoid missing work and reducing unplanned absences.
- Personalized coaching support – Employees can connect with licensed elder care professionals who provide guidance on evaluating care options, navigating decisions, and planning next steps. This one-on-one support is especially valuable when employees are managing complex situations like finding senior living or applying for Medicaid, reducing the time spent navigating these decisions on their own.
- Emotional well-being resources – Options such as counseling or support groups offer expert help for managing caregiving-related stress. These resources help employees manage mental health challenges, reducing burnout and enhancing work engagement.
- Caregiver leave – Access to paid or unpaid time away allows employees to care for an aging loved one during critical moments, such as a new diagnosis or a move into senior living. This support helps them focus on care needs without added work pressure so they can return refreshed and stay present in their role.
- Flexible work – Adjustable schedules, remote work, or reduced hours allow working caregivers to handle caregiving tasks during the day, like taking their loved one to appointments. These options make it easier to stay in their role without falling behind or needing to step away entirely.
- Financial support for caregiving – Options like Lifestyle Spending Accounts (LSAs), Dependent Care Assistance Programs (DCAPs), or caregiving stipends help employees cover common elder care expenses like medical supplies or transportation. Reducing out-of-pocket costs can ease financial strain, improving retention and allowing employees to remain focused at work.
The workplace impact of caring for aging loved ones
37.1 million Americans provide unpaid elder care, yet 80% of working caregivers say their employers are more understanding of childcare responsibilities than caring for an aging loved one. This gap in support leaves employees managing care needs on their own, increasing stress and creating risks for both employees and the organization. For employers, the challenge isn’t awareness: it’s understanding how caregiving is impacting employees day-to-day and where those pressures are showing up across the workforce.
Burnout among working caregivers
An AARP study found that over 60% of caregivers report burnout symptoms. Outside of work, employees caring for aging loved ones manage a range of daily tasks, from administering medications to helping with bathing and dressing. This sustained demand can lead to chronic stress and health challenges, making it harder for employees to stay focused, engaged, and consistent in their roles.
The financial strain of caregiving
About one in five working caregivers report experiencing high financial strain. Many older adults lack the savings to cover long-term care, leaving employees to pay out of pocket for essentials like medications and medical equipment. As costs accumulate, employees may take on additional work, reduce retirement contributions, or reconsider their long-term employment, creating retention risk for employers.
The impact of caregiving on workplace productivity
Caregiving responsibilities cost employers an estimated $5,600 per employee each year in lost productivity. Without support, employees often have to step away from work to handle routine needs like appointments or urgent situations like a fall. These disruptions can affect focus, delay work, and reduce both individual performance and team productivity.
Top elder care challenges impacting employees today
Data from Cariloop’s 2025 Employee Caregiver Top Needs Report highlights several key challenges facing employees caring for aging loved ones:
- Healthcare costs continue to rise, driving a 22% increase in requests for financial assistance as caregivers struggle to keep up with out-of-pocket expenses. This signals a growing financial strain that affects employee retention and overall stability at work.
- More caregivers are running into legal challenges, with a 24% increase in requests tied to financial strain and planning needs, such as managing estates or handling power of attorney matters. These responsibilities often involve complex, time-sensitive decisions that can delay action and require employees to step away from work to coordinate next steps.
- Medicare and Medicaid are the second most common reasons caregivers seek support from Cariloop. Without guidance, employees may struggle to understand eligibility and coverage, delaying care decisions and increasing the time required to manage these tasks during the workday.
- Caregivers are facing more difficult family conversations, with a 35% surge in requests for support with decisions like taking away car keys or changing living arrangements. These situations are often emotionally complex and require coordination across family members, adding decision-making strain during the workday.
Why employers should offer elder care benefits
The focus shouldn’t be on simply offering benefits. It should be on selecting solutions that reduce disruption, improve decision-making, and provide real-time support.
Improve productivity and retention: Caregiving responsibilities cost employers an estimated $44 billion annually in lost productivity and turnover. Flexible, personalized support, such as coaching and care coordination, equips employees to manage care needs without disrupting their work.
Reduce unplanned absences: Nearly 1 in 4 employed caregivers report missing work due to care responsibilities. Access to reliable, responsive support, such as backup care, helps employees address unexpected needs, like medical emergencies or last-minute cancellations, without missing work.
Increase employee engagement: 67% of caregivers report difficulty balancing work and caregiving demands. Benefits that address both emotional and financial stress, such as professional counseling or caregiver stipends, help employees stay engaged and manage competing demands between work and caregiving more effectively.
Strengthen talent attraction: Nearly 87% of Human Resources professionals agree that caregiving policies help attract talent. Offering benefits like flexible work, financial support, and paid leave can help organizations remain competitive in the job market and meet evolving workforce needs.
Lower healthcare costs: 41% of caregivers have low well-being, which is associated with higher healthcare utilization. Support that helps employees address health-related needs like managing providers, medications, or appointments can reduce caregiving strain and help lower healthcare costs over time.
What makes an elder care benefits program effective?
The most effective elder care benefits are designed around how caregiving actually shows up in employees’ lives and how those needs evolve. For employers, this means prioritizing solutions that not only provide resources but also reduce complexity and help employees take action. This evaluation should happen before rollout and continue over time, as caregiving needs evolve across the workforce.
Accessibility: Support should be easy to find and use when employees need it, not buried in portals or limited by wait times. Programs that offer real-time access to guidance or care options are more likely to be used when caregiving challenges arise.
Flexibility: Caregiving rarely follows a predictable schedule. Effective programs support both planned needs, like appointments or care transitions, and unexpected situations, such as a last-minute cancellation or medical emergency, without requiring employees to step away from work.
Personalization: Employees need support that reflects their specific situation. Having options for personalized guidance, such as one-on-one coaching or structured support plans, allows employees to choose support that’s relevant to their situation.
Navigation support: Managing elder care often involves coordinating across healthcare providers, insurance systems, and family members. Programs that provide direct guidance, such as coaches who help employees understand Medicare coverage, reduce delays and enable faster, more informed decisions without requiring employees to navigate complex systems on their own.
Equity: Caregiving needs vary widely, from occasional support to complex, ongoing care. Effective programs ensure that all caregivers, regardless of the type or stage of care, have access to meaningful support, rather than limiting benefits to a narrow set of situations.
How Cariloop supports employees with elder care benefits
- Personalized guidance from licensed Cariloop Coaches who help employees navigate their caregiving journey and manage complex situations with confidence.
- A backup care solution that provides employees with reliable, vetted options when plans change so they can coordinate care without missing work.
- A comprehensive Caregiver Support Platform® offering tools and resources to help employees collaborate with their Care Team, explore curated elder care content, and connect with other working caregivers.
Learn how Cariloop can support your workforce and fit into your existing benefits strategy.