Family caregivers spend an average of $11,508 a year out of pocket

Family caregivers across the country are spending an average of $11,508 a year out of pocket on caregiving, taking up 31% of their total annual household costs. That is according to a new study from AARP, the massive advocacy organization for older Americans, which examined expenses among U.S. adults age 18 and older caring for an adult relative or friend.

The numbers show how deeply everyday families are digging into their own pockets to support loved ones. Families spend an average of $4,797 on household and housing annually, including food, rent and mortgage payments. Household costs make up around 42% of all their expenses, while medical expenses take 37% of their annual budgets.

Nursing homes alone eat up 19% of annual household budgets, with prescription drugs and medical equipment taking another 11%. The financial strain hits low-income families the hardest. Families making $40,000 or less annually spend more than three-quarters of their budget on care expenses, according to AARP.

In contrast, families with household budgets of at least $150,000 spend around 19% on care. Costs jump even higher when caregivers also have adult children to support, averaging $17,775 spent annually and half of household income dedicated to caregiving. When caregivers and care recipients live under the same roof, caregivers devote 36% of household income to care, compared with 26% for those living separately.

Meanwhile, senior living affordability remains a major hurdle, with monthly costs averaging $4,335 for independent living, $6,787 for assisted living and $8,612 for memory care, according to NIC MAP data. The study points to a growing need for financial relief, including caregiver tax credits, paid Family leave and home care support.

For anyone managing a household while caring for aging parents, these numbers are a stark reminder to plan ahead before the bills pile up.

Photo: Abhiramakella, CC0, via Wikimedia Commons