Family caregivers face average annual out-of-pocket cost of $11,508

Megan O'Reilly, vice president of governmental affairs at AARP, explains that the rising cost of caregiving stems from a simple reality: the more medical and personal assistance a person needs, the more money it costs. A study released Wednesday, shared first with NPR, quantifies this burden. It finds that family caregivers, who assist disabled, chronically ill, or elderly adults, now spend an average of $11,508 out of pocket every year. This figure represents a 60 percent increase over five years and consumes 31 percent of the caregiver's income on average.

The surge in expenses is driven by the basics of survival, specifically food, housing, and medical bills. The study, which surveyed 2,538 family caregivers, shows that this rate of increase is more than double the 24 percent overall inflation recorded by the federal Bureau of Labor Statistics. For many, the financial strain compounds with lost wages. The survey indicates that increased caregiving demands often force individuals to cut back on working hours or leave the workforce altogether, creating a double financial hit of higher costs and lower income.

Meghan Maher, a resident of Florida, experienced this shift firsthand. Seven weeks after giving birth to her first child, her mother was diagnosed with advanced cancer. Maher, working in cancer research, initially tried to balance her career with her new role as a sandwich caregiver. She reduced her hours to part-time but found it impossible to coordinate her mother's appointments while meeting professional deadlines. She eventually quit, halving her family's income. When her father later suffered severe complications from abdominal surgery in 2017, the family had to pay for additional child care, which Maher estimates cost $10,000 annually.

Maher’s experience is common among the roughly 63 million Americans who provide ongoing help to family members or friends. That group represents about one in four adults. As the population ages, the need for support will likely expand. An estimated 70 percent of people turning 65 today will require some form of assistance. Medicare does not cover routine home or facility care, leaving families to pay high private rates. In 2025, 40 hours of in-home care per week cost approximately $72,792, while a shared room in skilled nursing care averaged $115,000 per year, according to insurance company Genworth.

After her mother’s death, Maher became a professional death doula, a self-employed role that offers schedule flexibility but pays half of what her previous research career did. She now helps clients navigate the complex paperwork for Medicaid, which unlike Medicare, covers long-term care. In Florida, Maher notes that chronically ill clients often hire attorneys to qualify for these benefits, a service that costs about $6,000.

The AARP report notes that about half of family caregivers have made major financial sacrifices, such as drawing down retirement savings. While all states provide some Medicaid payments to family caregivers, with rates in California ranging from $16.90 to $25 per hour, funding for these programs may shrink due to a federal budget bill that cuts nearly $1 trillion from Medicaid over the next decade. Congress is considering several proposals to help, including a bipartisan bill for a $5,000 national tax credit and a law to protect Social Security credits for full-time caregivers.

Nancy LeaMond, AARP executive vice president, states that caregiving costs have historically been less visible than gas or rent. She expects that to change as more people share their financial struggles. In May, Maher testified before a Senate committee on aging, noting that the flexibility of self-employment came with real financial tradeoffs. She was invited to speak by Daughterhood, an organization that supports caregivers.