AARP: Family Caregivers Face $11,508 Average Annual Out-of-Pocket Costs

The average American family caregiver now spends $11,508 out of pocket each year for food, housing, and medical expenses, according to a study released Wednesday by AARP. This amount represents roughly 60% more than what providers paid just five years ago. For the typical individual, these costs consume 31% of their total income.

The rise in caregiving costs has outpaced the general economy. During the same five-year period, the federal Bureau of Labor Statistics measured overall inflation at 24%. The AARP report, which surveyed 2,538 family caregivers, identifies the basic necessities of life as the primary drivers of this financial strain.

Megan O'Reilly, vice president of governmental affairs at AARP, explains that the complexity of care is increasing. "The more care that's needed, the more it costs," she says. This financial burden often coincides with a drop in earnings. The survey finds that many caregivers must reduce working hours or leave the workforce entirely to manage medical responsibilities at home.

Meghan Maher experienced this dual pressure after her mother was diagnosed with advanced cancer seven weeks after Maher gave birth to her first child. Maher, who worked in cancer research, eventually quit her job to manage her mother's care and later her father's recovery from abdominal surgery. The move cut her family's income in half. She estimates she paid $10,000 annually for childcare while advocating for her hospitalized father.

Maher is one of approximately 63 million adults in the United States who provide ongoing help to a family member or friend. That figure equates to about one in four adults. Medicare does not cover routine in-home assistance, leaving families to pay full price. In 2025, Genworth estimated the cost of 40 hours of weekly in-home care at $72,792 per year, while a shared room in skilled nursing facilities averaged $115,000 annually.

About half of all family caregivers report making major financial sacrifices to maintain care. These actions include working more hours, cutting savings, or drawing down retirement funds. Maher now works as a self-employed death doula, a role that offers schedule flexibility but pays half of her former research salary.

Policy responses are emerging at both state and federal levels. Six states currently offer tax credits between $1,000 and $5,000 for home modifications like grab bars. In 14 states and the District of Columbia, most employers must provide paid family and medical leave. A bipartisan bill introduced last year would expand a $5,000 tax credit nationwide.

Nancy LeaMond, AARP executive vice president, notes that the scale of these personal expenses is forcing the issue into legislative discussions. "When you see the number of people paying this kind of money, I think that'll be an impetus for action in the legislative arena," she said.