Caregivers spend thousands of dollars of their own money on average, up 60% from 2021's out-of-pocket costs

A new AARP report shows just how expensive it can be to care for a loved one. seb_ra/Getty Images Millions of families are dishing out five figures this year to care for their loved ones.AARP found that caregivers spent $11,508 out of pocket this year on average, up nearly 60% from $7,242 five years ago. The new results were based on a study conducted in June and July featuring over 2,500 adults who provide care to an adult relative or friend."The increase in costs may indicate that caregivers are purchasing more or different types of support, covering a greater share or broader range of care-related expenses, or managing more intensive or complex care needs," the report said. "The difference may also partly reflect the resumption of services following the pandemic, enhancement to the 2026 questionnaire and differences in the caregiver population between the two different studies." Household expenses like food and housing accounted for 42% of caregiving expenses, followed by 29% for medical expenses. AARP said 37% of medical expenses are from "copays, coinsurance, insurance premiums and direct payments to providers," followed by 19% for nursing homes.Tamara Johnson, who is in her 50s, had worked a well-paying corporate leadership job but quit to care for her husband after a major stroke. He went from earning almost $200,000 a year to bringing in $50,000 in medical disability retirement. His care costs quickly became a massive share of their combined income."It's been taking two steps forward and three steps back," Johnson said. "We're still on that healing journey."AARP asked working caregivers what work-related actions they've had to take: work more hours, work an additional job, take unpaid time off, take paid time off, work fewer hours, and work different hours. Thirty-four percent of workers experienced three to six of those impacts, and another 31% experienced one or two. AARP data suggests that people who got second jobs or increased hours at their current jobs had the highest out-of-pocket costs and needed to find a solution.Caring for someone with dementia can be even more costly. Caregivers providing assistance to a relative or friend living with dementia spend $5,600 more out of pocket, on average, than caregivers for loved ones without dementia. Additionally, caregivers with a relative or friend in a nursing home spent, on average, half of their annual household income on caregiving expenses.Wendy Rowland, who is in her 50s, relocated from Tennessee to Mississippi after selling her and her husband's home to help pay for his long-term care. Her husband was diagnosed with early-onset Lewy body dementia, and his facility costs $6,750 a month. Because he hasn't reached the age when he could claim Social Security, he receives $2,700 a month in disability insurance, which falls way short of his monthly care costs. "I've navigated this mostly on my own. It's more than a lot of people can take, and it was almost more than I could take," Rowland said. "It was a really dark time when everything first started, but I knew I had to keep it together at least a little to take care of everything." Read next Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Madison Hoff is a reporter on Business Insider’s economy team. She covers the labor market, inflation, spending, and other data. In addition to covering new estimates and trends, her workforce reporting includes career pivots, job searching, and side hustles.She also covers downsizing, particularly people selling their houses to pursue RV living. She has also reported on how much teachers spend out of pocket and what it’s like being a caregiver.Her stories often cover the state of the economy, what experts are saying, and how people are navigating the workplace or their careers.Previously, she was a junior reporter and data editorial fellow on the Strategy team. Noah Sheidlower is a senior economy reporter with Business Insider. He covers retirement, aging, age tech, and employment trends.Noah reported a monthslong, award-winning series called 80 Over 80 about what working at 80 and older looks like. The 300-interview series includes over a dozen features and chronicles the lives of people like an 81-year-old Home Depot worker battling heart failure, a 93-year-old woman searching for a job, and an 85-year-old bus driver who died at work.In 2024, Noah led a 17-story retirement series on the regrets older Americans have about their lives. He has also reported on how Americans have navigated unemployment, what compels Americans to move, and how mass deportations could impact the economy. He has appeared on SiriusXM Business Radio, Vox, and CBS News to discuss his reporting.Noah received his Bachelor's in Sociology and English from Columbia University. Noah has covered the restaurant industry, transportation, retail, and markets for CNBC, NBC News, CNN, and The Atlanta Journal-Constitution.