Average Caregiver Outlay Surges 60% to Over $11,500

Caregivers in the United States are spending an average of more than $11,500 per year on the people they support, a 60% increase from 2021, according to a new AARP study.

The report analyzes a survey of more than 2,500 individuals who cared for an adult relative or friend in June and July of this year. The data reveals that the financial burden weighs most heavily on lower-income families. For households earning less than $40,000 annually, caregiving expenses account for more than three-quarters of their total income.

Wendy Mayo, 44, of Connecticut, illustrates the practical reality of these rising costs. She and her two siblings share responsibility for their mother, who has Alzheimer’s disease and requires round-the-clock supervision. Their combined annual spending on her care reaches $45,000, with Mayo personally paying $15,000. Their expenses cover professional caregivers, rent, and home modifications designed to prevent falls and bedsores.

"We pay her rent and bought stuff to prevent bedsores, plus bed alarms because she was getting out of bed and wandering around," Mayo said. "So we also invested in cameras to watch her, and all those things add up when you're a caregiver." Mayo noted that the role was not something she planned for, forcing her to reduce her own retirement savings to manage the household expenses.

Housing and other household costs represent the largest share of caregiver spending, averaging nearly $4,800 per year. These line items typically include food, rent, mortgage payments, and property taxes. Healthcare expenses rank second, covering insurance premiums, copayments, and hospital bills. Additional major costs include nursing home fees, medical equipment, and both prescription and over-the-counter medications.

Megan O'Reilly, AARP’s vice president of government affairs for health and family, explained that this spending directly impacts retirement security. "The financial outputs they provide for their loved one have implications for their own retirement security," O'Reilly said. She also noted that the strain extends beyond money, as caregivers provide unpaid labor to navigate the healthcare system, including finding providers and making appointments.

The survey found that nearly two-thirds of working caregivers reported that their duties affected their jobs. Some increased their hours to cover added costs, while others reduced their schedules or left the workforce entirely to meet caregiving demands. O'Reilly stated that these workers face difficult decisions about staying in the workforce or adjusting their hours to meet the needs of their loved ones.