First up: Understanding caregiving needs

Caregiving can take many forms and look different depending on everyone's needs, but recent data can help give us a sense of what the big picture looks like for your employees today:

• Roughly 1/5 of Americans provide unpaid care to an adult for an average of 24 hours/week
• Over half of caregivers feel they had no alternative but to take on the responsibility
• 28% of caregivers stop saving, 23% take on more debt, and 22% use up their short-term savings
• Almost 4 in 5 caregivers incur out-of-pocket expenses due to caregiving and, on average, spend one quarter of their income on caregiving
• While caregivers span every demographic, age, ethnicity, and income level, women account for over 75% of all caregivers
• Women caregivers report higher levels of depression, anxiety, and lower life satisfaction
• Nearly half of caregivers (47%) experience at least one financial setback, like tapping into savings, tightening spending, or cutting back on retirement contributions and investments
• US caregiving in 2021 cost a national median of $54,000 for assisted living facilities, $61,776 for home health aides, and $108,405 for private rooms in nursing homes

The good news: The workplace can become a key resource to help employees make informed decisions around their caregiving needs. In fact, the workplace may be the first place some turn to for resources and support: At Morgan Stanley, our research shows that over 70% of workers would be open to receiving personal financial support at work from a financial professional, four in five want their employers to be more involved in helping them through financial hardships, and nearly as many say their company needs to help them better understand how to maximize their current benefits.

Take action: Help employees connect the dots

Your employees may not realize it yet, but workplace benefits can help them create the financial foundation they need to cover their caregiving needs. It's up to employers to show them how benefits education and financial wellness offerings can make a difference.

Focus targeted webinars, employee resource group discussions, and education campaigns on topics like how caregiving needs can evolve over time, what a care plan entails, and budgeting for retirement and long-term care. There are also many community-based and federal resources for caregivers that employees may need help discovering. Include supplemental information on Medicare and social security in retirement benefits enrollment communications. Look into highlighting organizations like the Caregiver Action Network and The National Family Caregiver Support Program, as well as government-subsidized programs that help caregivers shoulder out-of-pocket expenses. Help connect employees to professionals that can help navigate the complex financial landscape of caregiving—like tax professionals, social workers, geriatric care managers, and care advisors.

Additionally, workplace financial wellness programs can help with many common money concerns that affect caregivers, like budgeting, managing debt, and building long-term financial well-being. Plus, many of these resources are available remotely and on demand. Check if your provider offers free access to financial planning apps or websites, emergency savings with an employer match, or even employer contributions toward student loan repayment.

And if you don't already offer financial coaching or access to a financial advisor through your workplace benefits, it might be worth considering. Professional financial guidance can help employees personalize their financial planning and adapt to changing circumstances. For example, our advisors often suggest that caregivers make two separate budgets—one for them, and one for their loved one. Importantly, a workplace financial advisor can also help uncover opportunities to stretch budgets and employee benefits further, whether it's through maximizing transit coverage or finding proper long-term care insurance.

The takeaway: Caregiving means real support for the long haul

As former First Lady Rosalynn Carter once said, "There are four types of people in this world: Those who have been caregivers, those who currently are caregivers, those who will be caregivers, and those who will need caregivers." Because caregiving touches all of us, there is a real need and a deep opportunity for the workplace to come alongside employees to financially empower them for the long haul.

And while it can be difficult to think about ailing or needing help, covering the costs of caregiving is a meaningful part of planning for the future—and your employees will appreciate your support in planning for the financial considerations of caregiving, both for themselves and their loved ones.

Krystal Barker Buissereth is Head of Financial Wellness at Morgan Stanley at Work.