While many Americans worry about inflation, rising gas prices, soaring grocery bills, and the high cost of living amid stagnant wages, a report AARP released Wednesday found that caregivers bear the heaviest financial burden. Caregivers now spend an average of $11,508 out of pocket each year, which is a staggering 60% increase in just five years. That financial strain consumes an average of 31% of their income, forcing many to sacrifice their own financial security to care for the people they love.
The numbers are alarming. Caregiving expenses have surged far beyond wage growth, placing an increasingly heavy burden on those already stretched financially. According to the report, costs have risen at more than twice the overall inflation rate of 24%. Food, housing, and medical expenses account for the largest share of caregivers’ out-of-pocket spending.
Megan O’Reilly, AARP’s vice president of governmental affairs, says caregivers often face difficult financial sacrifices based on their loved ones’ needs for in-home care. “The more care that’s needed, the more it costs.” The needs extend extensively and vary per caregiver, with some having to reduce their working hours, quit their traditional jobs to care for their loved ones overall, or find side gigs to compensate for the additional costs.
The financial responsibility, coupled with other personal responsibilities, also weighs heavily on caregivers, as many have families of their own. The term “sandwich” caregiver describes a scenario in which a caregiver is caring for an aging or ill parent while also raising young children, as in the case of one caregiver surveyed, Meghan Maher, who was seven weeks postpartum when she took on the caregiver role for her mother, who was recently diagnosed with cancer.
Like many, Maher was forced to quit her full-time job to care for her mother after reducing her workload to part-time proved to be unsuccessful. Her mother eventually moved in with her, which increased her household expenses and daily responsibilities. Following her mother’s death, her father also fell ill, and she took on the role of caregiver for him.
The study revealed that nearly one in four adults are caregivers. That number is expected to grow, as about 70% of people turning 65 this year will need some form of long-term care as they age. The financial burden is significant. Medicare generally does not cover routine caregiving services at home or in a facility, leaving families to shoulder much of the cost. In 2025, 40 hours of in-home care per week cost an average of $72,792 annually, according to Genworth. A shared room in a skilled nursing facility averaged $115,000 a year.
