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American retirees often become both givers and receivers of care and financial support. Usually, they are providers early in their retirement and end up as the recipients as they grow older and possibly outlive their retirement funds.

People don’t often include these situations in their retirement planning. Figuring out how to prepare for them can protect you in retirement.

Providing support in retirement

A growing percentage of U.S. retirees care for family members. A 2025 AARP/National Alliance for Caregiving survey estimates 63 million Americans provide care for loved ones with serious health issues without pay.

Most of these caregivers are over 50, and about 22% are 65-plus. This unpaid care is typically for a spouse, sibling or parent with a chronic health condition, disability or functional limitation.

Grandparent caregiving is also becoming more common. About a third of the 6.7 million grandparents living with grandchildren are responsible for their care, according to the 2021 U.S. Census.

Additionally, retirees often help loved ones financially, perhaps after an illness, job loss or divorce. Many retirees also assist with college costs, daycare costs or special-needs care. And, as people live longer, they financially support their own aging parents when they outlive their savings.

Generosity needs a plan

Retirees who are caregivers or financial supporters often find fulfillment in helping loved ones, but it can also be stressful. They may neglect their own health or give away too much money, depleting their own retirement funds.

Often, retirees find themselves providing care or financial support because of unplanned events that happen to their family. Because the impacts on retirement security can be profound, it’s best to plan for these risks as much as possible.

The first step is for the retiree to talk with family members about everyone’s expectations. Part of that conversation should include backup plans in case the retiree becomes incapable of providing care.

It is also important for retirees to consider the feasibility of helping family members financially. For example, if a retiree wants to provide financial gifts to loved ones or pay for college, it should be done carefully to ensure the retiree can maintain financial stability throughout their retirement.

Additionally, retirees should have an emergency fund for the possibility of unexpected events that impact loved ones. They should also stress-test their plan before giving recurring help: Take into account market downturns, inflation and a long lifespan.

Care and financial support

As retirees age, they might need help with errands, appointments, medications and money management, or they might require simple companionship. This help most often comes from family. In fact, about 70% of people receiving family caregiving in the U.S. are 65 or older.

The 2024 Retirement Risk Survey found that 78% of U.S. retiree respondents expect strong or moderate levels of support from family or friends.

It’s also not unusual for older family members to receive financial assistance from loved ones, especially adult children. Often, the need for support happens when the retiree loses a spouse, which can affect retirement income.

However, most retirees don’t expect to need financial support from their family. The survey revealed that 49% expect no support, and only 26% expect minimal support.

The importance of planning ahead

While family is a major source of care for retirees, many people don’t prepare for this circumstance, and when needs arise, it can disrupt loved ones’ lives. Both physical care and financial support can put stress on a caregiver’s job and finances, resulting in lost wages and Social Security benefits, and lower retirement savings.

Just as the stress of caregiving can affect retirees, it can also impact younger caregivers’ physical and mental health.

Even before retirement, people should talk with family members to ensure they know where to find important financial and legal documents, such as power of attorney, advance directives and wills.

Retirees should also plan where they’re going to live if they need assistance and who will be part of their support network.

Retiring couples should consider what happens to retirement income (e.g., Social Security survivor benefits and pensions) when one member dies. Surviving spouses and unmarried retirees should also take into consideration the aging of their support network.

For example, by the time a retiree needs care, the people they planned to rely on themselves might be incapable.

In short, it’s important to have backup plans when it comes to care or financial support later in life.

For many Americans, family is central during retirement. Working with loved ones to identify roles, set boundaries and save for surprises can protect retirees’ well-being and their nest egg, and give their loved ones peace of mind.

© 2026 The Kiplinger Washington Editors. Distributed by Tribune Content Agency LLC.