While many Americans worry about inflation, rising gas prices, soaring grocery bills, and the high cost of living amid stagnant wages, a report released Wednesday by AARP, the nonprofit advocacy organization for Americans 50 and older, found that caregivers bear the heaviest financial burden. Caregivers now spend an average of $11,508 out of pocket each year — a staggering 60% increase in just five years. That financial strain consumes an average of 31% of their income, forcing many to sacrifice their own financial security in order to care for the people they love.

The numbers are alarming. Caregiving expenses have surged far beyond wage growth, placing an increasingly heavy burden on households already stretched financially. According to the report, costs have risen at more than twice the overall inflation rate of 24%. Food, housing, and medical expenses account for the largest share of caregivers' out-of-pocket spending.

Megan O'Reilly, AARP's vice president of governmental affairs, said caregivers often face difficult financial sacrifices tied to their loved ones' need for in-home care. "The more care that's needed, the more it costs," she said. Those needs extend extensively and vary from caregiver to caregiver: some reduce their working hours, quit traditional jobs altogether to care for their loved ones, or find side gigs to compensate for the additional costs.

The financial responsibility, coupled with other personal obligations, also weighs heavily on caregivers, many of whom have families of their own. The term "sandwich" caregiver describes a scenario in which someone cares for an aging or ill parent while also raising young children. Among those surveyed was Meghan Maher, who was seven weeks postpartum when she took on the caregiver role for her mother, who had recently been diagnosed with cancer.

Like many caregivers, Maher was ultimately forced to quit her full-time job after reducing her workload to part time proved unsuccessful. Her mother eventually moved in with her, increasing both her household expenses and daily responsibilities. Following her mother's death, her father also fell ill, and Maher took on the role of caregiver for him as well.

The study revealed that nearly one in four adults are caregivers — a number expected to grow, as roughly 70% of people turning 65 this year will need some form of long-term care as they age. As that population expands, the cost pressures the report documents are likely to reach a widening share of American households, not only those already providing care today.

The financial stakes are significant. Medicare generally does not cover routine caregiving services, whether at home or in a facility, leaving families to shoulder much of the cost — a gap that grows more consequential as the caregiving population expands. In 2025, 40 hours of in-home care per week cost an average of $72,792 annually, according to Genworth, while a shared room in a skilled nursing facility averaged $115,000 a year. Both figures run several times the average caregiver's annual out-of-pocket spending, underscoring the price of turning to professional care.

This article is based on reporting by Alternet.