AARP Report… Accounts for 31% of Household Income, Low-Income Families Spend Over 70% of Their Earnings

Asian Households Spend the Most at an Annual Average of $16,700… Burden Even Greater for Dementia Patient Care

In the rapidly aging United States, the financial burden on those caring for aging parents or family members has been found to be rising sharply.

According to the latest report released by AARP, the average annual out-of-pocket expenses borne by family caregivers reached $11,508, a surge of about 60% compared to just five years ago. This represents 31% of the average household income, demonstrating that caregiving costs are placing considerable pressure on family finances.

Debra Whitman, Executive Vice President of AARP, warned, “From food to housing and healthcare, the financial strain family caregivers absorb threatens their own financial security.”

Currently, about 63 million people in the U.S. provide daily care for family members, such as preparing meals, managing medications, and accompanying them to doctor appointments. Over the past decade, the number of adults engaged in caregiving labor has increased significantly by 50%. The value of this unpaid labor is estimated at approximately $1 trillion annually.

In particular, this study clearly revealed disparities in the caregiving cost burden based on income gaps, race, and region.

By income level, low-income caregivers earning less than $40,000 a year spent an astounding 76% of their household income on caregiving expenses, whereas high-income earners making $85,000 or more spent only 9% to 19% of their income, showing that lower-income households were hit far harder. In addition, when caring for patients with dementia (such as Alzheimer's), annual average expenditures soared to $15,846.

In the survey of expenditures by race, Asian American and Pacific Islander (AAPI) caregivers spent an average of $16,716 per year (31% of income), the highest amount among all racial groups. Black caregivers spent an average of $13,565 per year, which accounted for 52% of their household income, representing the highest burden relative to earnings. Hispanic caregivers followed at $10,684 (29%), and White caregivers at $9,806 (24%).

Regional differences were also significant. The annual average caregiving cost in eastern regions such as New York, New Jersey, and Pennsylvania was $15,845, nearly double that of central regions like Iowa, Kansas, and Missouri ($7,955).

Furthermore, the survey found that a majority (about two-thirds) of those juggling work and caregiving experienced work disruptions, such as reduced working hours or taking leaves of absence.

Researchers of the AARP report emphasized, “To alleviate the burden on family caregivers, policy support is urgently needed, including caregiving-related tax credits, the expansion of paid family leave, government-level home care support, and improved access to the healthcare system.”