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New AARP Report: Caregiver Out-of-Pocket Spending Rises 59 Percent

Average annual costs reach $11,508 as family caregivers tap savings, reduce retirement contributions and juggle work to cover care needs

7-minute read

Paul Wynn,

AARP

Published October 28, 2026

a hand holding money with a person in a wheelchair on top

Dan Page

Key takeaways

Nearly 9 in 10 caregivers cover expenses, devoting an average of 31 percent of their annual household income to caregiving.
Lower-income families and caregivers providing complex medical care face especially heavy financial strain.
Paying for care forces many families to borrow, reduce retirement contributions and change their work schedules, threatening future financial security.

A wheelchair ramp so a spouse can safely enter the house. Weekly grocery deliveries for a parent who can no longer shop. A home care aide to provide support while a family caregiver is at work. Gas expenses to take a friend to a medical appointment two hours away. For family caregivers, everyday purchases and unexpected bills can steadily eat into their own household budget.

Those costs have grown sharply over the past five years. AARP’s “Caregiving Out-of-Pocket Costs Report” finds that family caregivers spend an average of $11,508 a year supporting a family member or friend, up from $7,242 in 2021. That’s an increase of $4,266, or 59 percent.

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Spread across a year, the latest figure amounts to about $959 a month. Nearly 9 in 10 caregivers incur expenses, and caregivers devote an average of 31 percent of their annual household income to care, based on a survey of 2,538 caregivers conducted from June to July 2026.

The financial consequences extend well beyond the next expense. Caregivers report cutting their own health spending, reducing retirement contributions and taking out personal loans as they try to meet a loved one’s medical and care needs.

“This report affirms what we’re hearing from family caregivers about the financial challenges they face. They need relief," says Nancy LeaMond, AARP executive vice president and chief advocacy officer. “That’s why we’re urging Congress to pass the bipartisan Lowering Costs for Caregivers Act and advocating for other policies that will put money back in people’s pockets.”

Everyday essentials drive the bills

The biggest expenses are often basic essentials. Housing and household costs account for 42 percent of caregivers’ spending, averaging $4,797 annually. Food and nutrition account for 27 percent of spending within the household category, while rent, mortgage payments and property taxes account for another 25 percent.

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Medical expenses represent 29 percent of total spending, averaging $3,313 per year. Within that category, copayments, coinsurance, insurance premiums and direct payments to providers make up the largest share.

Together, household and medical expenses account for 71 percent of caregivers’ out-of-pocket costs. These bills can leave families with difficult choices about how to cover their own expenses while paying for someone else’s care.

The comparison with 2021 requires some context. The earlier survey took place during the COVID-19 pandemic, when access to services and spending patterns differed. The 2026 survey also added expense questions and expanded descriptions of existing categories, which could affect what respondents recalled and reported.

Inflation contributed to the increase too. The report estimates that adjusting the 2021 figure for inflation would bring it to approximately $9,100, still below the 2026 average. The findings point to a combination of higher prices and higher reported spending, rather than inflation alone.

Bills keep climbing for caregivers

For Peter Rosenberger, 63, a writer and podcast host, who has cared for his wife, Gracie, for 40 years, rising costs touch nearly every part of daily life in rural Montana. Food expenses, heating bills and over-the-counter medical supplies all put pressure on the household budget. He estimates they are spending an additional $300 a month on fuel for his diesel-powered truck for trips to the pharmacy and other errands related to her care.

Gracie, 60, uses two prosthetic legs. When she needed replacements this year, Medicare covered 80 percent of the cost, Rosenberger says. The couple was responsible for the remaining 20 percent, a substantial expense even with insurance.

Rosenberger faces medical bills of his own after a prostate cancer diagnosis this year. His insurance carries a high deductible, and traveling for radiation treatments added fuel expenses. Getting treatment also meant arranging for someone to help care for Gracie.

Paid caregivers offer relief, but Rosenberger says workers in his area generally expect at least $20 to $25 an hour. Hiring someone for 40 to 50 hours a week is beyond what he can afford.

Caregiving also shapes Rosenberger’s work schedule. He continues to work but needs projects that allow him to remain available to Gracie. “I’ve worked throughout 40 years of caregiving,” he says. “But increasing my income gets harder as care takes up my time and everyday costs keep climbing.”

Families with less income face greater pressure

Caregiving costs weigh especially heavily on households with limited income.

Caregivers in households earning less than $40,000 annually spend an average of $11,448 on care, nearly as much as the overall average. Their caregiving expenses represent an average of 76 percent of household income, the report finds.

Black caregivers also face a substantial strain, reporting average annual expenses of $13,565 and an average spending-to-income share of 52 percent. For white caregivers, those figures are $9,806 and 24 percent.

The costs can be particularly steep for parents supporting an adult child with illness or disabilities. They spend an average of $17,775 annually, with caregiving expenses representing an average of half their household income.

More demanding care brings higher costs

Families helping someone with complex medical care needs face additional financial pressure.

Caregivers supporting a person with Alzheimer’s disease or another form of dementia spend roughly $5,600 more annually than those caring for someone without dementia.

Paying for care can jeopardize future financial security

Caregivers with stretched budgets often pay for caregiving expenses by drawing on retirement savings, which can incur financial penalties before age 59½. Among those who do, caregiving expenses consume an average of 49 percent of household income. For those who borrow or take out loans, the average share is 50 percent. More than one-third of caregivers surveyed are cutting into their personal spending and savings accounts, causing further financial strain.

Work can become another pressure point. Nearly two-thirds of working caregivers report at least one employment-related change because of caregiving, including taking time off or changing their hours. Some work longer hours or take a second job. Sixty-seven percent of caregivers who resign early and 56 percent who retire from their jobs earlier than intended face particularly heavy financial challenges with the loss of a regular paycheck.

The report identifies potential avenues for relief, including refundable tax credits, more affordable home care and respite services, paid family leave and expanded opportunities to compensate eligible family caregivers. These are potential policy priorities, rather than benefits available to every caregiver.

“Policies such as tax credits, affordable home care and respite services, and paid, job-protected family leave would provide family caregivers with meaningful financial relief,” says Choula. “These measures would help families cover essential expenses and protect their earnings, especially those with the fewest financial resources.”

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Paul Wynn, a veteran health care writer, has spent over a decade immersed in the caregiving community, both as a family caregiver and as a journalist covering caregiving issues for national publications.

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