AARP: Caregiver Spending Hits $11,500

Family caregivers now spend an average of $11,500 per year to support aging relatives, according to a new AARP study. That figure represents a 60 percent increase from 2021 levels.

The research, conducted between June and July of this year, surveyed more than 2,500 individuals who provide care for an adult relative or friend. The findings show that financial burdens are heaviest for lower-income households. For families earning less than $40,000 annually, caregiving expenses consume more than 75 percent of their total income.

Wendy Mayo, a 44-year-old Connecticut resident, exemplifies the financial strain described in the report. She and her two siblings care for their mother, who has Alzheimer’s disease and requires constant supervision. The siblings split the expenses, which cover a professional caregiver, rent, and home modifications. Mayo estimates her individual share is $15,000 per year, bringing the family’s combined total to $45,000.

Housing and household costs are the largest expense category for caregivers. AARP estimates that families pay nearly $4,800 annually for items such as rent, mortgage payments, property taxes, and food. Healthcare costs, including insurance premiums and hospital bills, are the second largest financial burden. Other major expenditures include nursing home fees, medical equipment, and prescription drugs.

Megan O’Reilly, AARP’s vice president of government affairs for health and family, said these costs threaten caregivers’ own financial futures. She noted that the money spent on loved ones directly reduces the resources available for personal retirement savings. Mayo agreed, stating that supporting her mother has forced her to pull back on saving for her own retirement.

The time commitment also affects employment. Nearly two-thirds of working caregivers in the survey said caregiving responsibilities affected their work lives. Some employees increased their hours to cover costs, while others reduced their schedules or quit their jobs entirely to provide care. O’Reilly pointed out that caregivers also spend unpaid hours navigating the healthcare system, finding providers, and making transportation arrangements for appointments.