New research from AARP indicates that people caring for aging parents or loved ones are spending an average of more than $11,500 per year out-of-pocket, an increase of approximately 60% compared to 2021. The findings, based on a survey of more than 2,500 caregivers conducted in June and July, highlight the growing financial commitment required to provide support for adults who need assistance.
The number of unpaid caregivers in the United States has grown in recent years. According to SeniorLiving.org, approximately 53 million Americans provide unpaid care for an adult aged 50 or older, up from 43.5 million in 2015. AARP reports that housing-related expenses, including food, rent, mortgage payments, and property taxes, constitute the largest financial burden, averaging nearly $4,800 annually per caregiver.
Healthcare expenses, such as insurance premiums, copayments, and medical equipment, represent the second-largest cost category. Caregivers also frequently pay for home modifications like ramps and bed alarms. Wendy Mayo, a Connecticut resident caring for a mother with Alzheimer’s, told CBS News that she spends $15,000 annually, while her siblings contribute to a combined family expenditure of $45,000. Megan O’Reilly, AARP’s vice president of government affairs for health and family, stated that these financial outputs often impact caregivers' own retirement security.
The daily impact is seen in both household budgets and employment. Nearly two-thirds of working caregivers reported that their responsibilities affected their jobs, often requiring them to reduce hours or leave the workforce entirely to manage tasks like navigating the healthcare system and providing transportation. The Family Caregiver Alliance notes that caregivers spend an average of 24.4 hours per week on these duties. This shift has broader economic consequences: the direct cost to the U.S. economy from job losses and absenteeism is nearly $44 billion, and the Caregiver Action Network estimates that employers incur 8% more in healthcare expenses for employees who are caregivers, totaling an estimated $13.4 billion annually.
The scale of unpaid care is valued at more than $600 billion by the National Institute on Aging, a figure that is expected to rise as the population ages. Projections indicate that by 2030, people aged 65 and older will outnumber children in the U.S. While the gender gap in caregiving is narrowing—with men now making up 44% of caregivers—female caregivers still report a higher burden, according to the National Library of Medicine. Future policy discussions are expected to focus on workplace flexibility and community resources as the demand for family caregiving continues to grow.