AARP: Family Caregiver Costs Hit $11,500 Annually
Out-of-pocket expenses for informal care have risen by 60% since 2021, with housing and medical bills driving the increase for middle-aged adults.
By Olivia Miller ·
AARP released a new study on October 28 showing that the average annual cost for family caregivers has climbed to more than $11,500. The figure represents a 60% increase from levels recorded in 2021. The organization based these findings on a survey of more than 2,500 individuals who provided care for an adult relative or friend during June and July.
Wendy Mayo, a 44-year-old resident of Connecticut, illustrates the financial strain described in the report. She and her two siblings share the responsibility of caring for their mother, who suffers from Alzheimer's disease and requires constant supervision. The siblings divide the expenses, which cover a professional caregiver, rent, and home modifications. Mayo estimates her individual contribution at $15,000 per year, while the combined total for the family reaches $45,000.
Mayo detailed specific purchases necessary to keep her mother safe. "We pay her rent and bought stuff to prevent bedsores, plus bed alarms because she was getting out of bed and wandering around," she told CBS News. "So we also invested in cameras to watch her, and all those things add up when you're a caregiver."
For households with an annual income under $40,000, the financial burden is particularly severe. AARP data indicates that caregiving costs consume more than three-quarters of their average annual income. The study identifies housing and household expenses, such as rent, mortgage payments, and utilities, as the largest single category of spending. Caregivers report an average annual expenditure of nearly $4,800 on these items.
Healthcare expenses constitute the second largest financial burden. These costs include insurance premiums, copayments, hospital bills, and the purchase of medical equipment and prescription drugs. Megan O'Reilly, AARP's vice president of government affairs for health and family, stated that these outlays directly impact the long-term financial stability of the caregiver. "The financial outputs they provide for their loved one have implications for their own retirement security," O'Reilly said.
The study also examines the effect of caregiving on professional employment. Nearly two-thirds of working caregivers surveyed reported that their caregiving duties affected their work lives. Some individuals worked additional hours to cover rising costs, while others reduced their schedules or left the workforce entirely to manage their care responsibilities. O'Reilly noted that these employees must constantly adjust their hours to meet the needs of their relatives.
Mayo acknowledged that the role was not part of her long-term financial planning. "It's a role you're thrust into. It's not like retirement, which we plan for," she said. She admitted that supporting her mother has forced her to decrease her own retirement savings. The study highlights the dual pressure on the "sandwich generation," who are simultaneously raising children and supporting aging parents.
Beyond direct financial costs, AARP pointed to the time spent managing the healthcare system. O'Reilly explained that caregivers devote substantial unpaid hours to logistics. "They are spending time finding providers, making appointments, and providing transportation to and from those appointments," she said. These tasks require coordination and often pull caregivers away from their own daily routines.
