A study released Wednesday, Oct. 28, 2026, by AARP found that family caregivers now spend an average of $11,508 out of pocket annually to support disabled, chronically ill, or elderly adults. This figure represents a roughly 60% increase over the last five years, a rate that AARP says is more than double the overall inflation rate of 24% as measured by the Bureau of Labor Statistics. According to the report, these expenses now account for an average of 31% of a caregiver's income.
The findings are based on a survey of 2,538 family caregivers conducted in June and July. Researchers identified food, housing, and medical expenses as the primary drivers of the cost increase. Megan O'Reilly, AARP vice president of governmental affairs, stated that costs have risen as family members take on more complex medical responsibilities at home. The study also noted that roughly one in four U.S. adults—about 63 million people—currently provide ongoing help to a family member or friend.
The financial impact extends beyond direct spending, as many caregivers report reducing work hours or leaving their jobs entirely. Meghan Maher, a caregiver who testified before a Senate committee on aging in May, reported that her family income fell by half after she left a career in cancer research to care for her mother and newborn. Other caregivers, such as Wendy Mayo in Connecticut, reported spending $15,000 annually, contributing to a combined $45,000 spent by her and her two siblings to provide around-the-clock care for their mother.
Individual caregivers may notice changes in their financial stability as they navigate a market where 40 hours of weekly in-home care cost roughly $72,792 in 2025, while skilled nursing averaged $115,000 for a shared room. The effects include potential reductions in future Social Security benefits for those who leave the workforce, as they stop earning retirement credits. Additionally, a $1 trillion reduction in Medicaid funding over the next decade, resulting from federal budget legislation, is expected to decrease available public funds for state-run programs that pay family caregivers.
Legislative efforts to address these costs are currently pending in Congress. Proposed federal measures include a $5,000 nationwide tax credit for caregivers, a national policy for 12 weeks of partially paid family leave, and changes to Social Security rules to award credits to full-time caregivers. While 14 states and the District of Columbia currently require some form of paid family leave, and six states offer tax credits between $1,000 and $5,000, a national effective date for broader federal relief has not been established. In the interim, some individuals have reported seeking legal help costing up to $6,000 to navigate complex Medicaid eligibility rules.