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AARP: Family Caregivers' Out-of-Pocket Costs Jump Almost 60% in Five Years to More Than $11,500 Annually
New findings underscore the need for tax credits and other financial relief for America's 63 million family caregivers
WASHINGTON – Family caregivers are spending significantly more of their own money than five years ago to care for older parents, spouses and other loved ones. According to a new AARP report released today, family caregivers spend an average of $11,508 a year out of pocket on caregiving expenses, up almost 60% from 2021.
On average, family caregivers spend 31% of their annual household income on caregiving expenses, according to the report. For caregivers with household incomes below $40,000, that figure jumps to 76%.
“Family caregivers are spending more than $11,500 a year of their own money to care for loved ones — almost half a year of the average Social Security retirement benefit,” said Debra Whitman, AARP Executive Vice President and Chief Public Policy Officer. “Whether they're paying for groceries, housing or medical care, family caregivers are making a significant financial commitment that can affect their own economic security.”
“Millions of Americans are providing essential care for the people they love. They shouldn't have to sacrifice their own financial security to do it,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer. “That's why AARP is fighting for commonsense solutions that put money back in people’s pockets and get them the support they need to make their big responsibilities a little bit easier.”
The 2026 AARP Caregiving Out-of-Pocket Costs Study also found:
Caring for someone with dementia costs more.
- Family caregivers supporting someone with Alzheimer's disease or another form of dementia spend an average of $15,846 annually, compared with $10,221 for those caring for someone without dementia.
Housing and medical care account for most caregiving costs.
- Together, they make up 71% of annual out-of-pocket spending: 42% for housing and household expenses ($4,797) and 29% for medical expenses ($3,313). Of the money spent on medical care, more than 37% goes toward insurance premiums, copays, coinsurance and direct payments to health care providers.
Caregiving affects jobs and retirement.
- 65% of working caregivers experienced at least one work-related disruption because of caregiving, including changing work hours, taking time off or taking on additional work.
- Those who retired earlier than planned because of caregiving spent an average of $18,940 annually out of pocket — 64% more than the national average.
Some communities face greater financial challenges.
- Asian American/Pacific Islander caregivers report the highest average annual out-of-pocket expenses at $16,716, representing 31% of their household income, compared with the national average of $11,508.
- Meanwhile, Black caregivers spend the highest percentage of their household income on caregiving at 52%, with average annual out-of-pocket expenses of $13,565.
- Hispanic/Latino caregivers report the highest average financial stran among the racial and ethnic groups surveyed, despite spending less than the national average on caregiving expenses ($10,684 annually, representing 29% of their household income).
Caregiving costs vary significantly depending on where you live.
- Family caregivers in the Mid-Atlantic (New York, New Jersey and Pennsylvania) spend an average of $15,845 annually out of pocket, nearly twice as much as caregivers in the West North Central region (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), who spend $7,955 — the lowest among the nine U.S. Census regions.
Across the country, 63 million family caregivers help loved ones manage medications, prepare meals, attend medical appointments, and handle other essential daily activities. Together, family caregivers provide approximately $1 trillion in mostly unpaid labor annually, helping Americans remain in their homes and reducing the need for more costly institutional care.
AARP is fighting for financial relief through tax credits, grants and tax-free accounts, along with paid leave for working caregivers, expanded home care options and help navigating the health care system. At the federal level, AARP is pushing for passage of the bipartisan Lowering Costs for Caregivers Act, to provide financial relief by allowing a family caregiver with a tax-free flexible spending or health savings account to use those funds for the qualified medical expenses of a parent or parent-in-law.
Read the full 2026 AARP Caregiving Out-of-Pocket Costs Report here.
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About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the 125 million Americans 50-plus and their families: health and financial security, and personal fulfillment. AARP also produces the nation's largest-circulation publications: AARP The Magazine and the AARP Bulletin. To learn more, visit aarp.org, aarp.org/espanol or follow @AARP, @AARPLatino and @AARPadvocates on social media.
Media Contact: Ilse Zuniga, izuniga@aarp.org
