Caregiving Costs: AARP Reports $11,508 Annual Out-of-Pocket Average

Family caregivers in the United States spent an average of $11,508 out of pocket for care last year, according to a report released Wednesday by AARP. The study, which surveyed 2,538 individuals, marks a sharp rise in the financial burden placed on households managing the needs of disabled, chronically ill, or elderly adults.

The average annual cost represents a 60% increase over the span of five years. This growth rate is more than double the 24% rise in the Consumer Price Index reported by the federal Bureau of Labor Statistics. For the typical caregiver, these expenses consume 31% of total income.

Food, housing, and medical bills account for the largest share of these outlays. Megan O'Reilly, vice president of governmental affairs at AARP, noted that the rise in costs aligns with the increasing complexity of care provided in homes. "The more care that's needed, the more it costs," she said.

The financial strain extends beyond direct bills. The survey indicates that caregiving duties frequently force individuals to reduce working hours or leave the workforce entirely. This combination of rising expenses and lost wages creates a double burden for many families. About half of the respondents reported making major financial sacrifices, including dipping into retirement savings or working additional hours.

Meghan Maher, a professional death doula in Florida, described the impact on her own life. She became a "sandwich" caregiver seven weeks after the birth of her first child when her mother was diagnosed with advanced cancer. Maher eventually quit her job in cancer research, halving her family's income. She later hired a child care provider for approximately $10,000 a year while her father recovered from abdominal surgery.

Nationally, roughly 63 million adults provide ongoing care, a figure representing about one in four people. Medicare does not cover routine in-home assistance, leaving families to pay full price. Genworth data from 2025 valued 40 hours of weekly in-home care at $72,792 annually, while a shared room in skilled nursing cost an average of $115,000.

Legislative efforts are underway to address the gap. Six states currently offer tax credits to caregivers for expenses such as home modifications, typically ranging from $1,000 to $5,000 per year. A bipartisan bill introduced last year in the Senate seeks to establish a similar $5,000 credit at the federal level. Additionally, 14 states and the District of Columbia require employers to provide paid family and medical leave.