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When Retirement and Kinship Caregiving Intersect

October 16, 2026

The NKR Brief | National Kinship Review

Examining the Economic Realities and Support Systems Shaping Grandfamilies

Grandparents have long played an essential role in strengthening families, sharing wisdom and providing children with a sense of belonging. Their contributions also extend to the financial well-being of younger generations. According to 2026 research from AARP, grandparents provide an estimated $172 billion annually in direct financial support to their grandchildren, with 41% helping cover basic necessities. While these findings reflect grandparents across a range of caregiving arrangements, they underscore the significant role older generations play in supporting family economic security.

For grandparents who take on the responsibility of raising grandchildren, that commitment can bring additional financial responsibilities, particularly during or near retirement. From adjusting household budgets to navigating benefits and planning for the future, these caregivers make important decisions that affect both their families’ immediate needs and their own long-term economic security.

This month’s NKR Brief explores how grandfamilies navigate those decisions, the resources available to support them and why strengthening financial security is an important part of strengthening families.

Retirement and Kinship Caregiving Decisions

For many grandparents, the decision to raise a grandchild reflects a deep commitment to family. Whether the transition is gradual or unexpected, caregivers often draw on their experience, relationships and resources to create a stable environment where children can thrive.

But when caregiving begins during or near retirement, financial plans may need to change.

“Most grandparents didn’t plan for this,” said Patricia McGarvey, OPTIONS Care Management Supervisor with the Allegheny County Department of Human Services Area Agency on Aging.

McGarvey explained that grandparents may suddenly find themselves covering additional food, clothing, school and child care expenses, sometimes while living on fixed incomes. Some continue working to meet household needs, while others adjust retirement timelines or draw on savings they had intended for later years.

These decisions can have lasting financial implications. McGarvey noted that some caregivers begin collecting Social Security earlier than planned, reducing their monthly retirement benefits, while others withdraw from retirement accounts or take on debt to meet their families’ needs.

For grandfamilies, the challenge is balancing the immediate needs of the children in their care with their own long-term financial security.

Financial Security and Access to Support

Grandparents bring valuable experience, resilience and commitment to caregiving. Yet even the most resourceful families benefit from dependable support.

According to McGarvey, caregivers raising children outside the formal child welfare system may face additional challenges accessing financial assistance and navigating legal requirements.

Some grandparents care for children through private family arrangements without formal custody or guardianship. Depending on their circumstances and state laws, this can complicate access to certain benefits or decisions involving education and medical care.

Public assistance programs, including child-only Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, may help eligible families meet essential needs.

For caregivers navigating these options, ASCI’s Immediate Financial Relief FAQs for Kinship Caregivers offers practical guidance on available assistance, eligibility considerations and steps families can take to access support.

McGarvey emphasizes that public benefits should be recognized as valuable resources that can help caregivers maintain stability, rather than viewed through the stigma sometimes associated with seeking assistance.

Still, eligibility requirements, paperwork and uncertainty about available programs can make navigating support difficult. Allegheny County’s Area Agency on Aging offers one example of how local programs can help address caregiving costs. According to its 2024–2025 Annual Report, the agency’s Caregiver Support Program provided nearly $1.3 million in reimbursements to 464 caregivers. The program serves several populations, including eligible grandparents and other relatives age 55 or older raising children. Although these figures include caregivers beyond grandfamilies, they demonstrate the role targeted financial assistance can play in helping families manage ongoing expenses.

Notably, the program recognizes both legal guardianship and informal caregiving arrangements, offering an example of how support systems can account for the different ways kinship families are formed.

Ensuring that kinship caregivers have clear information, accessible guidance and assistance appropriate to their circumstances can help families make informed decisions and preserve resources for the future. For grandfamilies, that support can make a meaningful difference in balancing the responsibilities of raising a second generation with the need to protect their own financial well-being.

Building Long-Term Stability for Grandfamilies

Supporting grandparents raising grandchildren requires looking beyond immediate household needs to consider their long-term financial security. While these caregivers provide stability, connection and continuity for children, they also make decisions that can shape their economic well-being for years to come.

Research from Generations United highlights the financial sacrifices kinship caregivers often make, including drawing on savings, adjusting employment and retirement plans, and managing increased household expenses. These realities underscore the importance of support that addresses both present needs and future financial stability.

McGarvey identifies expanding access to financial and legal assistance as an important opportunity to strengthen grandfamilies, particularly those navigating caregiving through informal family arrangements.

For ASCI, connecting kinship families with information, guidance and community resources is an important part of supporting family stability. Yet the broader opportunity extends beyond individual organizations. Strengthening grandfamilies’ economic security requires greater attention to how financial assistance, legal support and services for older adults can work together to address caregivers’ changing needs.

For grandparents approaching or living in retirement, access to these supports can help them make informed decisions, preserve financial resources and plan for the years ahead.

“Supporting them is one of the most effective ways to support the children.”

Patricia McGarvey, OPTIONS Care Management Supervisor, Allegheny County Department of Human Services Area Agency on Aging

Investing in grandfamilies means recognizing the value of the care they provide while ensuring they have the resources and opportunities to sustain their own financial well-being. When grandparents have the support they need to thrive, they are better positioned to build lasting stability and opportunity for the generations who depend on them.