Caregivers now spend over $11,000 annually out of pocket

Family caregivers in the United States spent an average of $11,508 out of pocket last year, according to a study released Wednesday by AARP. This figure represents a 60 percent increase over a five-year period. The average expenditure now accounts for 31 percent of a caregiver's total income.

The rise in caregiving costs has accelerated faster than the general economy. The federal Bureau of Labor Statistics measured overall inflation at 24 percent during the same five-year window. Caregiving expenses therefore grew at more than twice the rate of standard consumer price increases.

The study, which surveyed 2,538 family caregivers, identified food, housing, and medical expenses as the primary drivers of these costs. Megan O'Reilly, vice president of governmental affairs at AARP, noted that caregivers are taking on more complex medical responsibilities at home. She stated that higher levels of care require higher financial investment.

Financial strain is compounded by lost wages. The survey found that many caregivers reduce their working hours or leave the workforce entirely. This creates a dual burden of increased expenses and decreased household income. Meghan Maher, a former cancer researcher, experienced this dynamic after her mother was diagnosed with advanced cancer when Maher was seven weeks postpartum.

Maher reduced her work schedule to part time before eventually quitting her job. Her family's income dropped by half. As her mother's condition worsened, the family took in her parents, raising household costs. After her mother died in 2017, Maher cared for her critically ill father, adding an estimated $10,000 annual cost for child care.

About half of all family caregivers report making major financial sacrifices. These actions include working extra hours, depleting savings, or drawing down retirement funds. Approximately 63 million adults, or one in four, currently provide ongoing care for a family member or friend. Experts estimate that 70 percent of today's 65-year-olds will require some form of assistance as they age.

Public insurance does not cover routine home care. Medicare excludes this benefit, leaving families to pay private rates. In 2025, Genworth reported that 40 hours of weekly in-home care cost $72,792 annually. A shared room in skilled nursing care averaged $115,000 per year. Many chronically ill individuals hire attorneys to navigate Medicaid eligibility, a process that costs about $6,000 in Florida.

Maher now works as a self-employed death doula to manage her schedule. She testified before a Senate committee on aging in April, highlighting the professional tradeoffs of caregiving. She was invited by Daughterhood, an organization supporting caregivers. While all states provide some Medicaid payments to caregivers, funding faces pressure from a federal budget bill that cuts nearly $1 trillion from Medicaid over the next decade.

Legislative efforts are emerging to address these costs. Six states offer tax credits between $1,000 and $5,000 for home modifications. Two other states have limited programs. A bipartisan bill introduced last year proposed a national $5,000 tax credit. Fourteen states and the District of Columbia require most employers to offer paid family and medical leave, though a national mandate is still pending in Congress.