Family caregivers spend an average of $11,508 a year out of pocket, up 59% from 2021, according to AARP.
Caregiving expenses consume an average of 31% of household income, with lower-income families facing substantially greater pressure.
The financial burden extends to careers and retirement, as caregivers adjust work schedules and draw on savings to support loved ones.
Caring for an adult relative or friend is taking a growing financial toll on American families, with caregivers spending an average of $11,508 annually from their own pockets, according to a new AARP study.
That amounts to about $959 a month for expenses associated with helping a loved one — on top of caregivers’ own financial obligations. Nearly nine in 10 caregivers report incurring expenses.
The findings, released Oct. 28, show average annual spending increased by $4,266 from the $7,242 reported in AARP’s 2021 study. However, AARP cautions that the comparison reflects more than rising prices. The earlier survey occurred during the pandemic, when access to services differed, and the latest questionnaire included additional expense questions and expanded descriptions.
Basic necessities account for most spending
Housing and household expenses represent the largest share of caregivers’ costs: 42%, averaging $4,797 annually. Those expenses include food, rent, mortgage payments and property taxes.
Medical expenses account for another 29%, averaging $3,313 a year. Insurance premiums, copayments, coinsurance and direct payments to providers make up the largest portion of that category.
Together, household and medical expenses account for 71% of caregivers’ spending.
The strain is particularly severe for households earning less than $40,000 annually. Caregivers in that group devote an average of 76% of household income to caregiving, according to the study.
More complex care needs also bring higher costs. Those caring for someone with Alzheimer’s disease or another form of dementia spend an average of $15,846 annually, compared with $10,221 among caregivers supporting someone without dementia.
Work and retirement also take a hit
The financial consequences reach beyond the bills caregivers pay.
Among working caregivers, 65% experienced at least one work disruption associated with caregiving, including changing hours, taking time off or taking on additional work.
Caregivers who retired earlier than planned because of their responsibilities reported average annual expenses of $18,940 — 64% above the overall average.
AARP is advocating financial relief through caregiver tax credits, expanded home care options and paid leave. It also supports the proposed bipartisan Lowering Costs for Caregivers Act, which would allow eligible caregivers to use tax-free health savings or flexible spending account funds for a parent’s or parent-in-law’s qualified medical expenses.
The study included 2,538 adult caregivers recruited through Ipsos KnowledgePanel. Participants completed an initial survey and a one-week expense diary in June and July 2026, with results weighted to Census Bureau benchmarks.