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Should you become a caregiver or keep your job?

Deciding whether to leave the workforce and become a caregiver is a complex decision.
Taking care of a loved one is no small responsibility. While some duties may require less commitment than others, the time may come when you need to decide between becoming a full-time caregiver for your loved one or keeping your job. The decision isn't one to be taken lightly, and in fact, it comes with considerations such as thinking about the financial, emotional, and job impacts.

The high cost of caregiving

Hiring outside help for caregiving (such as in-home care, adult day, and respite care services) can depend on a number of factors. To name a few, there's the range of time needed (from a few hours or days a week, to around the clock or live-in care) to the level of care needed, area you live in, and the agency you use. These factors contribute to the cost of care, and many families are surprised and often unprepared for these expenses.

To learn more about the some of the different types of services and cost of eldercare, read Fidelity's Types of senior and eldercare.

 
Beyond outside help, some additional ongoing and unexpected expenses to consider (that may or may not be likely) are food, gas for travel (possibly to appointments), vehicle accommodations, medications, home modifications, and medical supplies and equipment. 
 
As a result of high costs, you might think about leaving your job to provide the care your loved one needs. However, think carefully, do your research, and review all associated expenses before making your decision. Compare the cost of eldercare verses leaving the workforce.

The hidden cost of caregiving

The high cost of caregiving often leads people to leave the workforce unexpectedly or retire early. If you're thinking about leaving your job, be sure to look at the situation in its entirety. It could cost you more than your salary, about 15% of what you could have earned.1 Your decision to leave may also impact: 

  • Income and benefits
  • Promotions, raises, career advancement opportunities 
  • Contributions to 401(k) or workplace savings program (with an employer match)
  • Health insurance coverage and employer contributions to health savings accounts (HSAs)
  • Savings for financial goals 
  • Health care coverage 
  • Workforce re-entry relating to your desired income level and tenure
These are only a few considerations to keep in mind, especially as you prepare for your own retirement.

Your needs assessment

Whatever decision you make (that works best for you and your family), whether it's working part-time or leaving the workforce completely, if you become a caregiver for your loved one, be sure not to neglect your needs. Quick tips to consider:

To learn more about the hidden cost of leaving the workforce, read Fidelity's A financial roadmap for caregiving.

Know what's available to you

Caregiving laws and tax rules are designed to help caregivers. There's even financial assistance and support available. You may also be able to take advantage of tax credits and breaks based on your caregiving status. Research what works best for you and your situation. Here are some resources and programs you may want to consider:

As an alternative to quitting, you could consider the upside of flexible working arrangements (such as reducing the number of hours you work, taking a part-time job, or checking if you qualify for the Family and Medical Leave Act (FMLA) that may present a balance between staying in the workforce —impacting your financial stability — and caring for your loved one.

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1. Richard W. Johnson, Karen E. Smith, and Barbara A. Butrica, “Lifetime Employment-Related Costs to Women of Providing Family Care," Urban Institute, February 2023, https://www.urban.org/sites/default/files/2025-02/Lifetime-caregiving-costs.pdf.

This information is general in nature and provided for educational purposes only.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

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