The cost of caring for a loved one is surging – and families are feeling the strain
A new study study, released Wednesday by AARP, found that caregivers spend an average of $11,508 annually out of pocket while caring for an adult relative or friend. That amounts to an average of 31% of household income. (Photo: Michael Bahlo/dpa (Ph
Family caregivers are shelling out more than $11,000 a year on average to care for loved ones, consuming nearly a third of their household income, according to a new study.
The study, released Wednesday by AARP, found that caregivers spend an average of $11,508 annually out of pocket while caring for an adult relative or friend. That amounts to an average of 31% of household income.
The financial burden is even greater for lower-income households.
Caregivers with annual household incomes below $40,000 spend an average of 76% of their income on caregiving, the study found.
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Household and housing expenses make up the largest share of out-of-pocket spending, averaging $4,797 a year. Food, rent and mortgage payments are among the largest costs within that category.
Medical expenses average another $3,313 annually and include copayments, insurance premiums, prescription drugs, medical equipment and payments to hospitals and other healthcare providers, according to AARP.
The costs climb even higher for caregivers taking on more complex responsibilities.
Those caring for someone with Alzheimer's disease or another form of dementia spend an average of $15,846 annually, compared with $10,221 among those caring for someone without dementia, the study found.
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Caregivers who perform three or more medical or nursing tasks spend an average of $15,648 a year, nearly twice the $7,948 spent by those who perform none.
The financial strain can also spill into caregivers' jobs and savings.
Nearly two-thirds of working caregivers surveyed reported at least one work-related impact tied to caregiving. Working caregivers spend an average of $12,606 annually on care, according to AARP.
Those who took on an additional job spend an average of $16,851 a year on caregiving.
Some caregivers are also turning to borrowing money or tapping their retirement savings to cover expenses.
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Those who borrowed money or took out loans spend an average of $16,580 annually on caregiving, while those who dipped into retirement savings spend $17,907.
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