Family caregivers spend almost a third of household income on care, study finds

Family caregivers spend an average of more than $11,000 a year caring for their 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 a year out of pocket to care for an adult relative or friend. This represents on average 31% of household income.

The financial burden is even greater for low-income households.

Caregivers with annual household incomes below $40,000 spend an average of 76% of their income on care, the study found.

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A caregiver helps an elderly lady

Family caregivers spend on average more than $11,000 per year caring for their loved ones, consuming nearly a third of their household income. (iStock)

Household and housing expenses account for the largest share of direct spending, averaging $4,797 per year. Food, rent and mortgage payments are among the biggest costs in this category.

Medical costs average an additional $3,313 per year and include co-pays, insurance premiums, prescription drugs, medical equipment and payments to hospitals and other health care providers, according to AARP.

Costs increase even more for caregivers who take on more complex responsibilities.

People caring for someone with Alzheimer’s or another form of dementia spend an average of $15,846 a year, compared with $10,221 among those caring for someone without dementia, the study found.

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Caring middle-aged son helping his older father get dressed while sitting in armchair at home

Household and housing expenses account for the largest share of direct spending, averaging $4,797 per year. (iStock)

Caregivers who perform three or more medical or nursing tasks spend an average of $15,648 per year, nearly double the $7,948 spent by those who perform none.

Financial pressure can also impact caregivers’ jobs and savings.

Nearly two-thirds of working caregivers surveyed reported at least one work-related impact related to caregiving. Working caregivers spend an average of $12,606 per year on care, according to AARP.

Those who took on additional employment spend an average of $16,851 per year on care.

Some caregivers also resort to borrowing or using their retirement savings to cover expenses.

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Nurse or home health aide and elderly woman holding hands at home

Financial pressure can also impact caregivers’ jobs and savings. (iStock)

Those who borrowed money or took out loans spend an average of $16,580 a year on care, while those who dipped into their retirement savings spend $17,907.

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