Family caregiver out-of-pocket costs hit $11,500 annually

AARP released a study on Wednesday showing that family caregivers now spend an average of $11,508 out of pocket each year. This figure represents a 60% increase compared to five years prior. For the average caregiver, this expense consumes 31% of their total income.

The rate of cost growth exceeds the overall inflation rate measured by the Bureau of Labor Statistics. While general prices rose by 24% over the same five-year period, caregiving costs climbed at more than double that speed. The study surveyed 2,538 family caregivers to determine these figures.

Food, housing, and medical expenses drive the majority of these out-of-pocket costs. Megan O'Reilly, vice president of governmental affairs at AARP, stated that increased complexity in home care directly raises financial burdens. She noted that the more care required, the higher the price becomes.

Many caregivers face a dual financial pressure by reducing work hours or quitting jobs to manage their responsibilities. Meghan Maher, a former cancer researcher, left her career seven weeks after giving birth when her mother was diagnosed with advanced cancer. Her family income dropped by half when she quit, and household expenses rose as her parents moved in.

After her mother died in 2017, Maher cared for her father during a critical illness from abdominal surgery. She estimated that paying for child care during hospital stays cost her family approximately $10,000 per year. She eventually returned to work as a self-employed death doula to maintain schedule flexibility, though her income is now half of what it was in her previous career.

About half of all family caregivers report making major financial sacrifices, including cutting savings or dipping into retirement funds. Approximately 63 million Americans currently provide ongoing care to a family member or friend. This group includes roughly one in four adults.

Medicare does not cover routine in-home or facility care. Genworth data for 2025 places the cost of 40 hours of weekly in-home help at $72,792 annually. A shared room in skilled nursing care averages $115,000 per year. In Florida, Maher estimates that hiring an attorney to navigate Medicaid eligibility paperwork costs about $6,000.

Public funding options exist but vary by location. All states pay some family caregivers through Medicaid, with California providing between $16.90 and $25 per hour for in-home work. President Trump's recent budget bill cut nearly $1 trillion from Medicaid funding over the next decade, which may reduce these resources. Six states currently offer tax credits of $1,000 to $5,000 for home modifications, and 14 states plus the District of Columbia require employers to offer paid family and medical leave.