$11,508: The Average Annual Out-of-Pocket Cost for Family Caregivers
A new AARP report reveals that the financial burden of caring for ill or elderly relatives has surged by 60% in five years, outpacing general inflation.
By Madison Lewis ·
Family caregivers now pay an average of $11,508 out of pocket every year to support disabled, chronically ill, or elderly adults.
The AARP released this finding Wednesday, noting that this figure represents a 60% increase over the last five years. This rise in costs far exceeds the 24% inflation rate measured by the federal Bureau of Labor Statistics.
The data comes from a survey of 2,538 family caregivers. Food, housing, and medical expenses drive the majority of these costs. Megan O’Reilly, vice president of governmental affairs at AARP, explained that the financial strain mirrors the complexity of the care required. She stated, "The more care that's needed, the more it costs."
The financial impact is compounded by lost income. Many caregivers reduce their working hours or leave their jobs entirely. The AARP report indicates that about half of all family caregivers have made major financial sacrifices, such as drawing down retirement savings or cutting other expenses.
Meghan Maher, a former cancer researcher, experienced this double burden firsthand. Seven weeks after the birth of her first child, her mother was diagnosed with advanced cancer. Maher eventually quit her job, causing her family’s income to drop by half. Her parents moved in, further increasing household costs. When her father later suffered critical complications from surgery, the family paid approximately $10,000 a year for child care while she advocated for him in the hospital.
The scale of this issue is growing. Approximately 63 million Americans, or one in four adults, currently provide ongoing help to a family member or friend. An estimated 70 percent of people turning 65 today will require some form of assistance as they age. Medicare does not cover routine in-home help, which is expensive. Genworth data from 2025 shows that 40 hours of weekly in-home care costs about $72,792 annually, while a shared room in a skilled nursing facility averages $115,000 per year.
Legislative proposals aim to alleviate this burden. Six states currently offer tax credits to family caregivers, ranging from $1,000 to $5,000 annually for expenses like home modifications. Last year, two U.S. Senators introduced a bipartisan bill to establish a similar $5,000 tax credit nationwide. Other proposals include allowing caregivers to use health savings account funds for parents' medical expenses and protecting Social Security benefits for those who leave the workforce to care for family.
Public funding for caregiver support also varies by state. All states pay some types of family caregivers through Medicaid. In California, more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work. However, these funds are at risk due to a recent federal budget bill that cut nearly $1 trillion from Medicaid funding over the next decade.
