Seven weeks after the birth of her first baby, Meghan Maher’s mother was diagnosed with advanced cancer. Maher left her career in cancer research to care for her, and her family’s income fell by half. Her mother died in 2017.
Maher also faced about $10,000 a year in child-care costs. In April, she testified before Congress at a special Senate committee on aging, bringing that experience into a debate over who pays when families take on care.
A study released Wednesday by AARP, based on a survey of 2,538 family caregivers, found that they spend an average $11,508 a year out of pocket. That is roughly 60% more than five years ago.
The rise in caregiving costs is more than twice the overall inflation rate of 24%, measured through the federal Bureau of Labor Statistics’ Consumer Price Index. Food, housing and medical expenses make up the largest share of those costs, the study found.
On average, out-of-pocket care expenses account for 31% of a caregiver’s income. About half of family caregivers said they had made major financial sacrifices, including working more hours, cutting savings or drawing down money set aside for retirement.
The findings concern a large share of the population. About 63 million people provide ongoing help to a family member or friend, roughly 1 in 4 adults. An estimated 70 percent of people turning 65 today will need some form of help as they age.
Paying for outside help can be costly. In 2025, 40 hours of in-home caregiving help a week cost about $72,792 a year, according to the insurance company Genworth. Skilled nursing costs an average of $115,000 per year for a shared room.
Medicaid also plays a role in the care economy. In California, more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work through the programme. In Florida, chronically ill people routinely hire an attorney to qualify for Medicaid, at legal fees of about $6,000.
President Trump’s budget bill cut nearly $1 trillion from Medicaid funding over the next decade. The study was conducted by AARP, where Megan O’Reilly is vice president of governmental affairs and Nancy LeaMond is executive vice president.
Six states offer family caregivers tax credits for expenses including home alterations such as grab bars or railings. The credits are usually between $1,000 and $5,000 a year. In 14 states and the District of Columbia, most employers must offer paid family and medical leave that includes time off to care for a family member.
Last year, two US Senators introduced a bipartisan bill that would create a $5,000 tax credit nationwide for family caregivers.
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