Bipartisan Congressional Bills Target Retirement Gap for Family Caregivers

Lawmakers in both the House and Senate have introduced bipartisan legislation designed to increase retirement savings opportunities for family caregivers. The proposals target the financial strain faced by individuals who reduce their professional hours or leave the workforce entirely to support family members with illnesses, disabilities, or age-related needs. The legislation addresses a systemic gap in the U.S. retirement system, where unpaid caregiving often leads to diminished savings. With the U.S. entering 'peak 65'—a period of record numbers of citizens turning 65—the demand for care is rising, further stressing the financial stability of those providing it. One bill, the Improving Retirement Security for Family Caregivers Act, would permit qualifying caregivers to contribute the annual maximum to a Roth IRA regardless of earned income, provided they provide at least 500 hours of care and work fewer than 500 paid hours annually. A second measure would extend 'catch-up' contribution privileges, currently reserved for those 50 and older, to caregivers of any age in workplace plans like 401(k)s. Data from the AARP Public Policy Institute indicates that family caregivers provided approximately $1 trillion in unpaid care in 2024. The financial burden is particularly acute for women, who comprise three in five caregivers and typically hold lower retirement balances than men. According to Vanguard's 2025 report, the average 401(k) balance for women is $126,971 compared to $171,859 for men. The bills have been referred to the House Ways and Means Committee and the Senate Finance Committee for further review.