AARP Data Shows Caregiver Costs Jump 60% Since 2021

Unplanned household expenses have surged for Americans providing informal care to aging relatives. A new study by AARP indicates that the average annual out-of-pocket cost for these services has risen sharply over the last five years.

The organization found that caregivers now spend an average of more than $11,500 per year on the individuals they support. This figure represents an increase of approximately 60% compared to spending levels in 2021. The data comes from a survey of more than 2,500 people who provided care for an adult relative or friend during June and July of this year.

Financial strain is most acute for households with lower earnings. For families earning less than $40,000 annually, caregiving expenses account for more than three-quarters of total income on average. AARP identifies housing and household costs as the largest financial burden, averaging nearly $4,800 per year. These expenses typically cover rent, mortgage payments, property taxes, and food. Healthcare costs rank second, encompassing insurance premiums, copayments, and hospital bills. Additional major expenditures include nursing home fees, medical equipment, and prescription drugs.

Wendy Mayo, a 44-year-old resident of Connecticut, illustrates the scale of these costs. She and her two siblings share responsibility for their mother, who has Alzheimer's disease and requires constant supervision. The trio covers expenses for a professional caregiver, their mother's rent, and home modifications. Mayo estimates her personal annual spending at $15,000, while the combined total for the siblings reaches $45,000. She stated that the role was unexpected and forced her to reduce her own retirement savings.

Megan O'Reilly, AARP's vice president of government affairs for health and family, noted that these financial outputs directly impact personal retirement security. She explained that the money spent on loved ones reduces the capital available for the caregiver's own long-term financial stability.

Employment patterns are also shifting in response to these demands. Nearly two-thirds of working caregivers surveyed said their duties affected their jobs. Some employees increased their hours to cover rising costs, while others reduced their schedules or left the workforce entirely. This tradeoff creates a tension between immediate caregiving needs and long-term career earnings.

The survey also highlights the time commitment required beyond direct monetary costs. O'Reilly pointed out that caregivers dedicate unpaid hours to administrative tasks. These duties include finding providers, scheduling appointments, and transporting loved ones to medical visits. This time burden is particularly heavy for the sandwich generation, who manage both child-rearing and elder care simultaneously.