Family Caregivers Spend $11,508 a Year as Medical Bills and Lost Hours Pile Up

Family caregivers who help disabled, chronically ill or elderly relatives now spend an average of $11,508 a year of their own money, according to an AARP study released Wednesday. That figure is about 60% higher than five years ago and represents 31% of a caregiver's average income. Over the same period, the Consumer Price Index from the Bureau of Labor Statistics rose 24%.

The survey of 2,538 caregivers identified food, housing and medical expenses as the largest categories of spending. Megan O'Reilly, AARP's vice president of governmental affairs, said caregivers are managing more complex medical tasks at home. "The more care that's needed, the more it costs," she said.

About 63 million people, roughly one in four adults, provide ongoing help to a relative or friend. An estimated 70% of people turning 65 today will need some assistance as they age. Medicare does not cover routine help at home or in a facility. Genworth's 2025 survey put 40 hours of weekly in-home care at $72,792 a year, while a shared room in a skilled nursing facility averages $115,000 annually.

Meghan Maher reduced her hours to part time seven weeks after her first child was born, when her mother was diagnosed with advanced cancer. She later left her cancer research job entirely, cutting her household income in half. After her mother died in 2017, her father spent months critically ill following abdominal surgery, and Maher paid about $10,000 a year for child care to stay with him in the hospital. She now works as a self-employed death doula in Florida, where she says chronically ill residents often pay about $6,000 to an attorney to complete Medicaid paperwork.

Roughly half of family caregivers report major financial sacrifices, including working more hours, reducing savings or drawing on retirement funds, according to the AARP report. All states pay some family caregivers through Medicaid. In California, more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work. The federal budget bill signed by President Trump cuts nearly $1 trillion from Medicaid over the next decade.

Six states offer tax credits of $1,000 to $5,000 a year for caregiver expenses such as installing grab bars or railings, and two other states run smaller programs. In 14 states and the District of Columbia, most employers must provide paid family and medical leave.

Maher testified before a Senate committee on aging in April. "Caregiving has also reshaped my professional life," she said on the floor.

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