U.S. caregivers' out-of-pocket costs rise sharply as long-term care burdens deepen

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U.S. caregivers' out-of-pocket costs rise

Highlights

AARP reports average caregiver out-of-pocket spending rose nearly 60% to $11,508 in 2024 from $7,242 in 2021, based on a June–July survey.
Household costs comprise 42% and medical expenses 29% of caregiving outlays, with 37% of medical spend on insurance-related items and 19% on nursing homes.
Caregivers for dementia patients spend $5,600 more annually, and those supporting nursing home residents spend about 50% of household income on care.

AARP data points to broader care expenses

As reported by Business Insider, citing AARP, caregivers spend an average of $11,508 out of pocket this year, up nearly 60% from $7,242 in 2021, based on a study conducted in June and July among more than 2,500 adults caring for an adult relative or friend.

The organization says the increase may reflect caregivers buying more or different types of support, covering a broader range of expenses, or handling more intensive and complex care needs. It also says the comparison may partly reflect the resumption of services after the pandemic, changes to the 2026 questionnaire, and differences in the caregiver population between the two studies.

Household costs such as food and housing account for 42% of caregiving expenses, followed by medical costs at 29%. AARP says 37% of those medical expenses come from copays, coinsurance, insurance premiums, and direct payments to providers, while 19% relate to nursing homes.

Workforce and income pressures intensify

AARP's findings also show caregiving is affecting employment and household finances. Among working caregivers, 34% report experiencing three to six work-related impacts, including working more hours, taking another job, or taking paid or unpaid time off, while another 31% report one or two such effects.

The financial strain is steeper for families dealing with dementia or institutional care. Caregivers assisting someone living with dementia spend $5,600 more out of pocket on average than those caring for loved ones without dementia, and those with a relative or friend in a nursing home spend about half of their annual household income on caregiving expenses.

Individual accounts in the report illustrate the scale of the burden. Tamara Johnson says she left a well-paid corporate leadership role to care for her husband after a major stroke, while Wendy Rowland says she moved from Tennessee to Mississippi after selling her home to help cover her husband's long-term care facility costs of $6,750 a month.

In our earlier article on early-career job-hopping and wage growth in the U.S., we explained that research often treats job switching as a key driver of pay gains and a path to better long-term job matches. The piece also highlighted the tension between cultural skepticism about frequent moves and evidence that labor mobility can strengthen career outcomes—an important backdrop as many households face tighter finances and tougher trade-offs around work.

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