Family Caregivers Face $11,500 Annual Out of Pocket Cost

Family caregivers across the country are spending an average of $11,508 out of pocket each year, according to a report released Wednesday by AARP. That figure represents a 60 percent jump compared to five years ago. For the average caregiver, these expenses now consume 31 percent of their personal income.

The rise in costs has outpaced general inflation. The federal Bureau of Labor Statistics measured overall inflation at 24 percent over that same five year period. Caregiving costs, however, climbed at more than twice that rate. The study surveyed 2,538 family caregivers who assist disabled, chronically ill, or elderly adults.

Medical expenses, housing, and food account for the largest share of these bills. Megan O'Reilly, vice president of governmental affairs at AARP, noted that the increasing complexity of home care drives these numbers up. She stated, 'The more care that's needed, the more it costs.' Many caregivers also face reduced income because they must cut work hours or leave their jobs entirely to provide care.

Meghan Maher, a resident of Florida, experienced this financial squeeze firsthand. She became a caregiver seven weeks after the birth of her first child when her mother was diagnosed with advanced cancer. Maher returned to her career in cancer research after maternity leave but eventually cut her hours to part time. She quit her job entirely when the demands of work, her mother's appointments, and her newborn became unmanageable. Her family's income dropped by half, a change she described as scary. After her mother died in 2017, her father suffered serious complications from abdominal surgery. Maher had to stay by his side during long hospital stays, which required the family to pay for child care. She estimated that expense at about $10,000 per year.

Maher is one of an estimated 63 million Americans who provide ongoing help to a family member or friend. That number equates to roughly one in four adults. Medicare does not cover routine help at home or in facilities. In 2025, in-home caregiving at 40 hours per week cost approximately $72,792 per year, according to data from the insurance company Genworth. Skilled nursing in a shared room averaged $115,000 per year.

About half of all family caregivers report making major financial sacrifices, such as cutting savings or drawing down retirement funds. Maher returned to work as a professional death doula, a role that allows her to control her schedule. She earns half of what she made in her previous career. She testified before a Senate committee on aging in April, noting that the flexibility of self employment comes with real financial tradeoffs.

Legislators are considering several proposals to assist caregivers. Six states currently offer tax credits for expenses like home modifications, typically ranging from $1,000 to $5,000 annually. A bipartisan bill introduced last year would create a similar $5,000 tax credit nationwide. Fourteen states and the District of Columbia require most employers to offer paid family and medical leave, which includes time off for caregiving.

Nancy LeaMond, executive vice president of AARP, said that caregiving costs have not received as much public attention as gas or food prices. She believes the high number of people paying these bills will push for legislative action. 'In time, I believe that will coalesce to support family caregiving,' she said.