AARP: Caregiving expenses hit $11,500 per year

Family caregivers in the United States now average more than $11,500 in annual out-of-pocket expenses, a figure that represents a roughly 60% increase from 2021 levels, according to a new AARP report released Tuesday.

The study, based on a survey of more than 2,500 adults who provided care for a relative or friend in June and July of this year, details a sharp rise in the financial burden associated with long-term care. For households with annual incomes below $40,000, these expenses consume more than three-quarters of their total yearly earnings.

Wendy Mayo, a 44-year-old resident of Connecticut, illustrates the personal cost of this trend. She and her two siblings share the responsibility of caring for their mother, who has Alzheimer's disease and requires constant supervision. The siblings split the costs, which include professional care, rent, and home modifications. Mayo estimates her individual share is $15,000 per year, while the combined total for the family reaches $45,000.

"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."

Housing and household expenses, including rent, mortgage payments, and food, constitute the largest category of spending, averaging nearly $4,800 annually for caregivers. Healthcare costs, such as insurance premiums, copayments, and hospital bills, form the second largest financial burden. Other major expenses include nursing home fees, medical equipment, and prescription drugs.

The financial strain extends to the workforce. Nearly two-thirds of working caregivers surveyed said their caregiving duties have affected their jobs. Some have worked additional hours to cover costs, while others have reduced their schedules or quit entirely. Megan O'Reilly, AARP's vice president of government affairs for health and family, noted that these decisions directly impact retirement security. "The financial outputs they provide for their loved one have implications for their own retirement security," O'Reilly said. She added that caregivers also lose unpaid hours to navigating the healthcare system, finding providers, and providing transportation.