Two New Studies on the Growing Financial Cost of Family Caregiving – Herb Weiss

As National Family Caregivers Month approaches in November, two new caregiving studies highlight the financial pressures facing millions of Americans who care for older relatives and loved ones.

On Oct. 14, Edward Jones, Age Wave, and The Harris Poll released findings detailing the financial, emotional, and personal toll of caregiving. Two weeks later, on Oct. 28, AARP released its own report documenting rising out-of-pocket costs.

Although the studies examine different caregiver populations, both find that providing care can jeopardize a family’s financial security.

The 42-page Edward Jones report, The Financial Impact of Caregiving, is based on an online survey conducted in May and June 2026. It included more than 3,000 adult caregivers, with findings focusing on those financially assisting adults age 65 and older.

According to the report, 91% of financial caregivers spend their own money on the person they care for each year, and 84% are not fully reimbursed. On average, they spend $8,737 out of pocket annually. That money may come from retirement savings, emergency funds, or money set aside for their children’s education.

The study also found that only 33% of financial caregivers discussed and planned for their role beforehand, while just 22% felt “extremely prepared” when they began providing financial assistance.

The demands go beyond money. Caregivers provide an average of 109 hours of care monthly, with women averaging 118 hours compared with 98 hours for men. Nearly 73% are employed and balance caregiving responsibilities with their jobs.

Among employed financial caregivers offered caregiving benefits, 92% use them. Flexible schedules, remote work, and leave are among the most commonly offered benefits, although many caregivers most want financial assistance. Nearly half are also “sandwich caregivers,” supporting children while caring for an older adult.

The report found that 38% have stopped or reduced saving, 18% have reduced or paused retirement contributions, and 25% have borrowed money, increased debt, or delayed repayment. Women are more likely than men to reduce saving, 42% compared with 35%.

The report’s findings also reveal a contradiction. Eighty-seven percent say they do not want to become a caregiving burden on their own families, yet 81% are willing to reduce their financial security to care for someone else.

“Caregiving is filled with contradictions. It can be stressful, expensive, and overwhelming, while also being one of the most meaningful roles a person takes on,” said Ken Dychtwald, Ph.D., Founder and CEO of Age Wave.

The researchers stress the importance of discussing caregiving responsibilities before care is needed.

“Caregiving deserves the same level of planning many families already devote to retirement, education and other major life events,” said Ken Cella, Principal and Head of External Affairs at Edward Jones.

Cella recommends that families discuss finances, long-term care wishes and caregiving responsibilities before a crisis occurs. Financial advisors can also help families understand how caregiving expenses may affect retirement and other financial goals.

AARP Finds Rising Costs

The 2026 AARP Caregiving Out-of-Pocket Costs Study puts average annual out-of-pocket caregiving expenses at $11,508, up almost 60% from 2021. Caregivers spend an average of 31% of their annual household income on care. For those with household incomes below $40,000, the figure rises to 76%.

AARP released its first caregiving out-of-pocket study in 2016, followed by another in 2021. This latest study is the third in the series.

The new study examined a national sample of 2,538 adult caregivers who recorded care-related expenses over one week during June and July 2026. Conducted in English and Spanish through Ipsos KnowledgePanel, the research weighted its findings against U.S. Census Bureau benchmarks.

“Family caregivers are spending more than $11,500 a year of their own money to care for loved ones — almost half a year of the average Social Security retirement benefit,” said Debra Whitman, AARP Executive Vice President and Chief Public Policy Officer, in an Oct. 28 statement.

“Whether they’re paying for groceries, housing or medical care, family caregivers are making a significant financial commitment that can affect their own economic security,” she said.

Caring for someone with Alzheimer’s disease or another form of dementia is especially expensive. AARP found those caregivers spend an average of $15,846 annually, compared with $10,221 for caregivers assisting someone without dementia.

Housing and household expenses account for 42% of out-of-pocket spending, averaging $4,797, while medical expenses account for another 29%, or $3,313. Together, they represent 71% of annual caregiving expenses.

The report also found that 65% of employed caregivers experienced at least one work-related disruption, such as changing hours, taking time off, or taking on additional work. Caregivers who retired earlier than planned because of their responsibilities spent an average of $18,940 annually out of pocket.

Where caregivers live matters, too; annual expenses approach $16,000 in the Mid-Atlantic states, compared with about $8,000 in the West North Central region.

While AARP reports that caregiving expenses have increased almost 60% since 2021, the figure is not inflation-adjusted. Changes in survey questions and the unusual circumstances of the COVID-19 pandemic also should be considered when comparing the findings.

The Edward Jones and AARP reports measure different caregiver populations and use different research methods. Their dollar figures cannot be directly compared. Still, both studies show that families are paying substantial costs that may affect their financial security for years.

The Costs Families and Policymakers Experience

Justin Weinberg, a licensed nursing home administrator and Director of Strategic Growth & Analytics at Clifton, New Jersey-based Eastern Healthcare Group, says the nation’s health care system depends heavily on unpaid family care, even as costs to families keep rising.

AARP estimates that family caregivers provide about $1 trillion in mostly unpaid labor annually, helping Americans stay home and reducing the need for costly nursing home care.

“Nearly every hospital discharge plan for a frail older adult assumes a family member will be at home handling the bathing, meals, medications, and overnight supervision. If families stopped, the system would back up within weeks,” Weinberg warns.

He estimates that family caregiving represents about 24 million full-time jobs. Without that support, he says, hospitals would struggle to discharge patients safely, and many people would go without needed care.

Weinberg, who has been featured on caregiver issues in U.S. News & World Report and ProPublica, worries that caregivers who reduce their work hours, pause retirement contributions or retire early may find themselves financially vulnerable when they need care later in life.

“The long-term effect shows up in nursing home financing. Medicaid is the primary payer for more than six in ten nursing home residents, and it only pays after people spend down nearly everything. A caregiver who drains her savings for a parent will reach that point faster when she needs care herself. The cost moves onto Medicaid a generation later,” he said.

He also urges families to discuss caregiving responsibilities before a crisis.“Each side is trying to protect the other. Parents don’t want to be a burden, and adult children feel it’s presumptuous to bring up a parent’s decline,” he said.

Families may mistakenly believe Medicare covers ongoing long-term care. Weinberg recommends making arrangements before a fall, stroke, or hospitalization forces decisions under pressure.

“Put a power of attorney and health care proxy in place while the parent can still sign them. Take stock of the parent’s income, savings, and insurance. Decide which sibling handles money, which handles medical decisions, and who provides hands-on care. And agree in advance on what would mean home is no longer safe, such as repeated falls or wandering at night,” he recommends.

Is America’s Caregiving System Sustainable?

“No, the oldest baby boomers turn 80 this year, and AARP projects the number of potential family caregivers for each person over 80 will drop from about seven in 2010 to four by 2030. Families are already at their limit, and the paid workforce can’t make up the difference, since every part of our sector is competing for the same aides and nurses,” Weinberg said.

He believes policy changes could provide some relief.

“A caregiver tax credit would give the most direct relief, but only if it’s refundable. The bipartisan Credit for Caring Act would offer up to $5,000, but as written it simply reduces taxes owed, so lower-income caregivers who owe little would get little,” he said.

Weinberg also supports expanding Medicaid-funded home care and paid family leave. He points to Washington state’s WA Cares Fund, a public long-term care insurance program financed through payroll contributions, as another approach worth watching.

“If policymakers don’t act, I expect more families to reach us in a crisis instead of through a planned transition, longer waiting lists for home care, and more caregivers entering old age with depleted savings and needing Medicaid themselves. Either way, the cost will land on public budgets. Planning for it now is less expensive than paying for it in emergencies,” Weinberg said.

As National Family Caregivers Month begins, the findings of both studies raise a troubling question for the 120th Congress and state policymakers: How much longer can families be expected to shoulder these costs largely on their own?

To read more articles by Herb Weiss, go to:  https://2×8.ea2.myftpupload.com/herb-weiss/

Herb Weiss, LRI, 12, is a Pawtucket-based writer who has covered aging, healthcare, and medical issues for more than 45 years. To purchase his books, Taking Charge: Collected Stories on Aging Boldly and its two sequels, visit herbweiss.com.