The High Cost of Caregiving

Caring for an aging parent or loved one can be a noble endeavor. While it isn’t easy to balance work, life, and caregiving (link to new blog when posted), many find caregiving to be an incredibly rewarding experience.

But it’s also expensive.

According to AARP, caring for a loved one can have significant financial implications for family caregivers. They spend an average of 26 percent of their income—approximately $7,242 annually—on caregiving activities including food, gas, travel, medications and transportation. Long-distance caregivers may face even higher costs, with average annual expenses reaching $8,728.

Beyond that, caregivers are often faced with unexpected costs, like necessary home modifications (ramps, grab bars, bathroom updates, and stairlifts), medical supplies and equipment (durable medical equipment like wheelchairs), and transportation costs (vehicle modifications), which can quickly add up.

Caring for a loved one and its financial impact can lead to personal economic strain. Many caregivers are also forced to reduce work hours or leave their jobs to manage caregiving responsibilities. This often results in lost income and benefits, further intensifying financial challenges.

Time is Money.

The Family Caregiver Alliance estimates that family caregivers now spend an average of 24.4 hours per week providing care, with nearly one in four spending 41 hours or more weekly. Because many of the tasks seniors typically need help with – doctors’ appointments, banking, and trips to the post office – occur during the workday, family caregivers are forced to take time off work. The loss of career advancement opportunities and income adds up. For women caregivers, the total lifetime cost of caregiving is around $295,000 to $324,044, according to the Family Caregiver Alliance.

The financial impact is significant:

The direct cost of caregiving on the US economy is nearly $44 billion due to job losses and absenteeism.
Caregivers often experience increased healthcare costs, with employers incurring eight percent more in healthcare expenses for employees who are caregivers, amounting to an estimated $13.4 billion per year, according to the Caregiver Action Network.

The National Institute on Aging estimates that unpaid work provided by family caregivers is valued at more than $600 billion, emphasizing the substantial cost of caregiving in this country.

Who Are the Caregivers?

In its Family Caregiver Annual Report, SeniorLiving.org  says that approximately 53 million Americans provide unpaid care for an adult age 50 or older, a number that has increased significantly from 43.5 million in 2015.

Women make up the majority of family caregivers, but the gender gap has narrowed in the past decade. A report by Guardian Life called Caregiving in America found that as of 2024, 56 percent of caregivers are women, compared to 66 percent in 2015. The report also showed that the average age of caregivers has decreased, with Millennials now representing the largest cohort of caregivers working full-time.

The Gender Gap

According to the National Library of Medicine, current trends show that while men are more likely to undertake caregiving duties, female caregivers report a higher burden. Men help with simpler tasks such as paying bills and arranging home care. But it’s the women who do the heavier lifting like bathing, toileting and dressing.

The Challenges Facing Today’s Caregivers

1. Balancing Acts: The “sandwich generation” now includes Millennials caring for both children and aging parents while working full-time.
2. Health Impacts: Home Healthcare News reports that caregivers face higher rates of mental distress, obesity, asthma, and chronic conditions compared to non-caregivers.
3. Financial Strain: The out-of-pocket expenses and lost wages caregivers can expect to experience may impact their retirement and long-term financial stability.
4. Increased Demands: According to the National Health and Aging Trends Study, the number of care hours provided by family caregivers grew by 50 percent from 2011 to 2022, a trend that shows no sign of slowing.

A Look Ahead

As the population ages, with projections showing that by 2030, people aged 65 and older will outnumber children, the need for family caregiving is expected to grow even more. This underscores the importance of supporting caregivers through policy changes, workplace flexibility, and community resources. By understanding the evolving landscape of caregiving, families can better prepare for the challenges and consider all available options, including professional care services and senior living communities, to ensure the best care for their loved ones while maintaining their own well-being.

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