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New AARP Report: Family Caregivers Face $2.3 Trillion in Lost Earnings and Retirement Income
New findings show working caregivers could lose an average of $120,500 over their lifetimes, highlighting the need for greater financial support
WASHINGTON – Caring for loved ones can take a serious toll on Americans’ finances, with consequences that can last well into retirement. A new AARP report finds that the financial impact could add up to $2.3 trillion for a generation of caregivers. Americans now in their early-to-mid 40s who provide care for loved ones tend to cut back their work hours to provide unpaid care. As a result, they collectively risk losing $2 trillion in pay, $140 billion in workplace retirement income, and $150 billion in future Social Security benefits over their lifetime.
The report, The Hidden Cost of Caregiving: Lost Earnings, Retirement Income, and Social Security Income, estimates that the typical working caregiver in this group will lose $120,500 over their lifetime, underscoring the long-term financial consequences of providing unpaid care.
“Caregivers often pay a heavy toll on their own financial security to help a loved one,” said Debra Whitman, Executive Vice President and Chief Public Policy Officer at AARP. “The financial cost of caregiving doesn't end when caregiving does. When working caregivers reduce their hours or need to quit their job entirely, they lose not only their current salary and benefits but also opportunities to save for retirement and build future Social Security benefits costing them an average of $120,500 over their lifetimes.”
“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 policies that put money back in caregivers’ pockets and give them the support they need to care for their loved ones.”
Key findings from the report highlight the financial sacrifices working family caregivers make, both today and in retirement:
- Caregiving could cost workers $120,500 over their lifetimes. On average, caregivers in the study are projected to lose $105,100 in pay from working fewer hours or leaving their jobs, plus $7,300 in retirement income and $8,100 in future Social Security benefits.
- Those who spend the most time away from work could lose nearly $450,000. Caregivers who miss the equivalent of more than two and a half years of full-time work because of caregiving could lose an average of $446,500 in lifetime income and retirement benefits.
- The longer people provide care, the greater the financial toll. Caregivers who spend 10 years or more caring for loved ones could lose an average of $175,000 over their lifetimes.
The report uses the Urban Institute's Dynamic Simulation of Income Model (DYNASIM4) to estimate lifetime economic losses among working caregivers born between 1981 and 1985.
Read the full 2026 The Hidden Cost of Caregiving: Lost Earnings, Retirement Income, and Social Security Income Report here.
In the lead-up to the 2026 election, one in two older voters in battleground states identified as a recent, current or future caregiver. Find results from AARP’s battleground polls 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
