Family Caregivers Spend $11,508 a Year, AARP Study Finds

New 2026 research shows that caregiving costs consume nearly one-third of household income on average, with the greatest pressure on caregivers with lower incomes and more complex care responsibilities.

Family caregivers routinely pay out of their own pockets to help adult relatives and friends, and the financial commitment is substantial. AARP’s 2026 Caregiving Out-of-Pocket Costs Study found that caregivers age 18 and older spend an average of $11,508 a year on caregiving. Caregivers spend an average of 31% of annual household income on those costs.

The study, fielded in June and July 2026, examined expenses among U.S. adults age 18 and older who care for an adult relative or friend. It is the third AARP study in this series, following research conducted in 2016 and 2021.

• Caregivers spend an average of $11,508 annually out of pocket, equal to 31% of household income on average.
• Household and housing expenses account for 42% of spending, while medical expenses account for 29%.
• Caregivers with household incomes under $40,000 spend an average of 76% of household income on caregiving.

What expenses drive caregiving costs?

Household and housing costs are the largest expense category, averaging $4,797 annually and representing 42% of total out-of-pocket spending. Within this category, food and nutrition account for 27% of average household and housing expenses, while rent and mortgage payments, including property taxes, account for 25%.

Medical expenses average $3,313 annually and represent 29% of total caregiving spending. Copayments, coinsurance, insurance premiums, and direct payments to hospitals or providers account for 37% of average medical expenses. Within this category, nursing home costs account for 19%, while prescription drugs and medical equipment, supplies, and over-the-counter medications each account for 11%.

Who faces the greatest financial pressure?

Caregivers with lower household incomes devote the largest share of their income to care. Those with annual household incomes under $40,000 spend an average of 76% of household income on caregiving. By comparison, caregivers with incomes from $40,000 to $84,999 spend 17%, and those with incomes from $85,000 to $149,999 spend 9%. Caregivers with household incomes of $150,000 or more spend 19%.

Care demands also shape costs. Caregivers supporting someone living with Alzheimer’s disease or another form of dementia spend an average of $15,846 annually, compared with $10,221 among those caring for someone without dementia. High-intensity caregivers spend $15,084, compared with $8,343 among low-intensity caregivers. Caregivers who perform three or more medical or nursing tasks spend $15,648, compared with $7,948 among caregivers who perform none.

Costs are also higher for some family relationships and living arrangements. Caregivers of an adult child spend an average of $17,775 and devote 50% of household income to caregiving. Caregivers supporting someone ages 18 to 39 spend $16,217, representing 57% of their household income. When caregivers and care recipients live together, caregivers devote 36% of household income to care, compared with 26% among those living separately.

How does caregiving affect work and financial security?

Among working caregivers in the study, nearly two-thirds experienced at least one of six work-related impacts. Working caregivers spend an average of $12,606 annually, and many experience a higher-than-average level of financial strain. Those who took an additional job spend $16,851 and devote 42% of household income to caregiving.

Caregivers who take financial actions to manage costs also report higher spending and strain. Those who borrowed money or took loans spend an average of $16,580 and devote 50% of household income to caregiving. Those who dipped into retirement savings spend $17,907 and devote 49% of household income to care.

What could help family caregivers?

The findings point to the need for financial relief that addresses essential household and medical expenses and reflects the added costs of dementia and intensive care. The report identifies policy options including caregiver tax credits, access to affordable home care and respite, paid job-protected family leave, and opportunities to compensate eligible relatives who provide care.

Methodology

AARP conducted a hybrid, cross-sectional online study through Ipsos KnowledgePanel. Adults age 18 and older who were currently providing care for an adult relative or friend were recruited through an initial survey and then completed a one-week diary of caregiving expenses. The recruiting survey was fielded June 2 to 29, 2026, and the diary survey was fielded June 11 to July 9, 2026, in English and Spanish. The final study report identifies an analytic sample of 2,538 caregivers. Data were weighted using U.S. Census Bureau Current Population Survey and American Community Survey benchmarks. As with all public opinion research, results are subject to coverage, sampling, nonresponse, measurement, and data-processing error.

For more information on this study, please contact Laura Mehegan at lmehegan@aarp.org or Chuck Rainville at grainville@aarp.org. For media inquiries, contact media@aarp.org.