Caregiving Stress: Gen Z?

May 8, 2026

Although members of the youngest generation in the workplace have gotten off to an exceptionally strong start saving for retirement, they are now also coming under caregiver stress. In fact, growing pressures are pushing Gen Z to make hard choices about working, side hustling, and caregiving. The implications for employer sponsored retirement plans are clear: Gen Z takes robust benefit options seriously, and is especially eager for solutions that address immediate needs, while also supporting long term savings goals.

Saving for Retirement But Stretched…

Though caregiving tends to conjure actions by older generations on behalf of aging loved ones, Gen Z is now facing the strain of caregiving,and has been stepping up in a big way,as Carewell observes:

Caregiving isn’t just something older adults do — many Gen Zers are taking on this role earlier than expected. Whether caring for a parent, grandparent, or another loved one, these young caregivers are juggling major responsibilities, often with little support….Many Gen Z caregivers feel pressured to hide their responsibilities at work, fearing it could affect their career growth….Gen Z caregivers are making significant sacrifices, from financial strain to career setbacks and emotional burnout. Many feel unsupported by employers, overwhelmed by responsibilities, and pressured by societal expectations.

Among the ways employers can show their support for Gen Z caregivers (and really caregivers of any age) are:“offering flexible schedules, remote work options, and paid caregiver leave.” While employers may find it challenging to lean in around caregiving stressors, it is wise to remember that investing in loyal workers generally turns out to be well worth it: “Creating an open and supportive workplace culture where caregivers feel seen and valued will help ensure they don’t have to choose between their job and their loved ones.” Indeed, pointing out that Generation Z workers have generally gotten off to a strong start on saving for retirement, but are financially stretched, The Plan Sponsor University (TPSU) reports:

Traditional retirement benefits alone aren’t cutting it for this financially stretched demographic.Recent research from the Transamerica Center for Retirement Studies… reveals a generation caught between competing priorities and mounting financial pressures. More than half of Gen Z workers worry that artificial intelligence will make their job skills obsolete, driving over a third to juggle multiple jobs while 59% maintain side hustles. Add caregiving responsibilities, which affect 41% of this group, and you have stressed-out employees being pulled in multiple directions by a variety of financial demands. “Gen Z workers are financially stretched thin by meeting their obligations,” explained Catherine Collinson of Transamerica Institute….“Any enhancements to their compensation and benefits, especially those that will improve their situation and ease their burden, will be welcomed.”

Retirement plan sponsors can make a big difference for Gen Z through shifts in both how retirement benefits are communicated, and design enhancements. According to Experts at TPSU, specific examples of how retirement plan benefits can address both the immediate and longer term financial needs of Gen Z:

Include features such as student loan assistance, expanded emergency savings options, enhanced financial education, and more flexible access to funds during financial hardships, all while maintaining strong incentives for long-term retirement accumulation.

Ms. Collinson recommended that employers consider offering emergency savings programs alongside traditional retirement plans. “Financial wellness programs can help employees learn about personal finance and inform their goal setting, planning and decision making,” she noted in EBN. These tools can help prevent early retirement plan withdrawals that derail long-term accumulation.

Retirement Plan Sponsor?

Nice going! You can maximize engagement in the plan by tailoring messages for the different generations at work in your business. Increasing access to financial advice and planning is another important way that you can help employees from every generation progress toward their goals. A wise move for you as a plan sponsor? Secure protection for yourself. The standards and stakes are high for ERISA fiduciaries, and even if you have done nothing wrong, being hit with an allegation is costly and disruptive, putting your business and personal assets at risk: ERISA defense costs upwards of $600—per hour.

Keep in mind that outsourcing can reduce some of the risks inherently associated with retirement plan sponsorship, but under the high standards of ERISA, plan sponsors remain fiduciaries. Specific examples of what you can be held personally accountable for as a fiduciary include:

Decisions: Do you have the right advisor, and investment options?
Cost control: Are the plan fees reasonable and services solid?
Compliance: Do operations adhere to the plan document, and government regulations?

To help retirement plan sponsors protect themselves, Colonial Surety Company offers an efficient and affordable Fiduciary+Cyber Liability Insurance bundle. For just a few dollars a day, you’ll be armed with:

$1,000,000 for Defense and Penalties if you are faced with alleged or actual breaches of fiduciary duty.
Cybersecurity Coverage for the business and plan, which addresses Department of Labor recommendations, and includes expert response services to curtail damage after an incident.

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