Family Caregivers Face Sharp Rise in Out-of-Pocket Expenses, Study Finds

A new AARP study released in late 2026 shows that family caregivers now spend an average of $11,508 per year on out-of-pocket expenses. This represents a 60 % increase over the amount reported five years earlier and accounts for roughly 31 % of a typical caregiver’s income. The rise outpaces overall inflation, which the Bureau of Labor Statistics’ Consumer Price Index recorded at 24 % for the same period. Food, housing and medical costs are identified as the primary drivers.

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The report surveyed 2,538 caregivers and found that about half have made major financial sacrifices, such as cutting savings, drawing down retirement funds, or reducing work hours. Roughly 63 million adults in the United States currently provide ongoing assistance to a family member or friend—about one in four adults. Projected demographic trends suggest that 70 % of people turning 65 this year will need some form of help as they age. Private market data from Genworth indicate that a full-time in-home caregiver costs $72,792 annually, while skilled-nursing care averages $115,000 per year for a shared room.

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Several policy initiatives aim to ease the financial strain. Six states already offer tax credits of $1,000–$5,000 for caregiver-related home modifications, and two additional states have limited programs. A bipartisan Senate bill introduced last year would create a $5,000 federal tax credit for family caregivers. Other proposals include allowing health-savings-account funds to cover parental medical expenses, expanding paid family-medical leave to up to 12 weeks nationally, and protecting caregivers’ Social Security credits when they leave the workforce. Funding concerns arise because the President’s recent budget proposal cuts nearly $1 trillion from Medicaid over the next decade, potentially reducing state-level caregiver payments.

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Testimony from caregiver Meghan Maher before a Senate committee highlighted the trade-offs of self-employment, noting that flexibility comes with reduced earnings.

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• “We spend a lot of time talking to members of Congress, and you can't raise this issue in a meeting without being interrupted by someone telling their own story,” — Nancy LeaMond, executive vice president

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