Family caregivers face 60% cost increase, averaging $11,508 annually

Family caregivers now spend an average of $11,508 out of pocket each year, a figure released Wednesday by AARP and first reported by NPR, marking a 60 percent jump from five years ago and roughly 31 percent of a typical caregiver’s income. The new study surveyed 2,538 adults who provide unpaid care to disabled, chronically ill or elderly relatives, and found the cost surge outpaces overall inflation, which the Bureau of Labor Statistics puts at 24 percent for the same period.

The rise is driven mainly by higher food, housing and medical expenses, according to the report. At the same time, caregivers are handling more intensive and complex medical tasks at home, said Megan O’Reilly, AARP’s vice president of governmental affairs. “The more care that’s needed, the more it costs,” she explained. As families shoulder greater health responsibilities, the financial strain compounds, creating a double burden of rising outlays and shrinking earnings.

Personal stories illustrate the crunch. Cookie Jones quit her job to look after her mother, who has Alzheimer’s, and now earns less than before she left the workforce. Meghan Maher, who was caring for a newborn and a mother diagnosed with advanced cancer, eventually gave up her research position after cutting her hours to part‑time. Her family income fell by half, and she later faced additional childcare costs while caring for a father recovering from major surgery, estimating another $10,000 in expenses annually. The AARP survey found that about half of all family caregivers have reduced their work hours or left employment entirely, underscoring the economic hit beyond direct spending.

The findings arrive as policymakers debate how to support an aging population without overburdening households. AARP urges federal and state leaders to expand paid family‑care leave, increase reimbursement for home‑based services, and provide tax credits to offset out‑of‑pocket costs. If unaddressed, the growing financial pressure could force more workers out of the labor market and deepen inequality among families already struggling to make ends meet.