Contributed by: Sandra Adams, CFP®
For many retirees, becoming a grandparent brings immense joy and a sense of purpose. But increasingly, grandparents are stepping into caregiving roles—whether helping raise grandchildren, providing financial support to adult children, or caring for aging spouses. While these roles are rewarding, they can also place unexpected pressure on your retirement plan.
According to the U.S. Census Bureau, over 2.5 million grandparents are the primary caregivers for their grandchildren. Many others offer regular babysitting, financial support, or even contribute to housing costs. While it’s natural to want to help, it’s important to remember that your financial well-being is essential not only for your peace of mind but also to remain a steady presence in your family’s life.
Start by clarifying your boundaries—both in terms of time and money. Create a spending plan that includes caregiving-related costs, and be honest with your loved ones about what you can sustainably offer. Consider tools like 529 college savings plans or gift tax exclusions if you’re assisting with education costs. And if caregiving demands are growing, we can explore how that impacts your cash flow, healthcare planning, and estate intentions.
The key to navigating this role successfully is proactive planning. It is possible to maintain your financial independence while still being the supportive and loving grandparent you want to be. You don’t have to choose between caring for your family and caring for your future—you just need a plan that honors both.
Let’s work together to create a retirement plan that supports your family role without sacrificing your financial stability.
Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
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