Family caregivers in the United States are paying much more of their own money to look after loved ones, and the increase has far outstripped general price growth. An AARP study released Wednesday found that people who help disabled, chronically ill or elderly adults spend an average of $11,508 a year out of pocket.
That figure is roughly 60% higher than five years ago and amounts to 31% of a caregiver's income on average. Over the same period, overall inflation as measured by the federal Bureau of Labor Statistics' Consumer Price Index was 24%, less than half the rise in caregiving costs. The study surveyed 2,538 family caregivers. Food, housing and medical expenses made up the largest share of the spending.
Megan O'Reilly, AARP's vice president of governmental affairs, said caregivers are handling more care and more complicated medical tasks at home. "The more care that's needed, the more it costs," she said. The survey also found that caregiving often forces people to cut their work hours or leave their jobs, so higher costs arrive alongside lost income. About half of caregivers report major financial sacrifices, such as working more hours, reducing savings or drawing down retirement funds.
Meghan Maher knows the strain well. Seven weeks after her first child was born, her mother was diagnosed with advanced cancer, leaving her caring for a newborn and a parent at once. She moved to part-time work in cancer research and then quit, and the family's income dropped by half. Her parents later moved in, raising household costs. After her mother died in 2017, her father became critically ill for months following complications from abdominal surgery, and the family began paying for child care, which she estimates at about $10,000 a year.
The pool of people affected is large and growing. About 63 million people, roughly 1 in 4 adults, now provide ongoing help to a relative or friend, and an estimated 70 percent of those turning 65 today will need some form of assistance. Medicare does not cover routine help at home or in a facility. Genworth reported that 40 hours of in-home help a week cost about $72,792 a year in 2025, while a shared room in a skilled nursing facility averaged $115,000 a year.
Maher now works as a self-employed death doula, which gives her scheduling flexibility to help her father, though her income is half what her previous career would have paid. She says clients in Florida often hire an attorney, at about $6,000, to navigate the paperwork for Medicaid, which unlike Medicare does pay for long-term care. In April she testified before a special Senate committee on aging at the invitation of Daughterhood, a support group for caregivers.
Some public help exists. All states pay certain family caregivers through Medicaid, and in California more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work. Those programs may be squeezed, however, because President Trump's budget bill cut nearly $1 trillion from Medicaid funding over the next decade. Veterans Administration benefits can also help eligible people, though the rules are complex and many families hire advocates.
Policy proposals are emerging. Six states offer tax credits, usually between $1,000 and $5,000 a year, for expenses such as installing grab bars or railings, and two others have narrower programs. Two senators introduced a bipartisan bill last year for a national $5,000 credit. Fourteen states and the District of Columbia require most employers to offer paid family and medical leave, and a federal bill would create up to 12 weeks of partly paid leave for some workers. Another proposal would keep awarding Social Security credits to full-time caregivers.
AARP executive vice president Nancy LeaMond said the cost of care has been less visible than gas, food or health care, but she expects that to change. "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.
