Family caregivers now provide $1 trillion worth of care annually: AARP
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According to one study, nearly 59 million American adults provided care to a family member, neighbor or friend in 2024. new report From the AARP Public Policy Institute.
These efforts totaled 49.5 billion hours of maintenance, the report estimates; This represents $1.01 trillion in total annual economic value. Public Policy Institute The policy research arm of AARP, a nonprofit, nonpartisan organization representing individuals ages 50 and older.
According to the research, family caregivers often provide long-term services and support, almost all of which are unpaid. Average hourly value the wage for this job in 2024 was $20.41.
Their efforts include basic care for adults, such as managing medications, coordinating care appointments and assisting with other needs such as bathing, dressing and navigating insurance claims, AARP CEO Myechia Minter-Jordan said at a news conference about the research.
“Many people do all of this while working, raising children, and trying to stay afloat both financially and emotionally,” Minter-Jordan said. he said.
The $1.01 trillion economic value of family care exceeded $932 billion in total inside Federal, state and local Medicaid spending and out-of-pocket healthcare expenses total $557 billion, according to AARP.
This is AARP’s seventh report on care costs. Its first report estimated that the economic value of caregiving in 2006 was $350 billion, with an average hourly value of $9.63.
“Behind every data point in our report is a person, a daughter, a husband, a grandchild, a neighbor,” Nancy LeaMond, AARP’s chief advocacy and engagement officer, said at the press conference. “They deserve some financial relief.”
How might policy changes help offset costs?
In the last presidential election, both Democratic and Republican candidates were in favor of providing financial support to family caregivers, LeaMond said.
AARP hopeful lawmakers and candidates seeking office will address the issue before the midterm elections, he said.
Progress has been made in some states. According to AARP, 12 states have considered legislation that would provide tax breaks for caregivers by 2026.
In 2023, Oklahoma became the first state to provide tax credits to caregivers, followed by Nebraska in 2024.
AARP also advocates for federal bills that could help families cover the cost of care. The bipartisan Care Credit Act calls for a $5,000 tax credit for families to offset care costs. Meanwhile, another bipartisan effort, the Lowering Caregivers’ Costs Act, would allow caregivers to use health savings or flexible spending accounts for qualified medical expenses on behalf of their parents or parents-in-law.
Both bills have been in the House Ways and Means Committee since early 2025.
‘Almost like an epidemic’
AARP’s new $1 trillion figure on the economic value of family care is likely an underestimate, said Carolyn McClanahan, a physician and certified financial planner who is also the founder of Life Planning Partners in Jacksonville, Florida.
“The amount of self-care is almost like an epidemic,” said McClanahan, a member of the association. CNBC Council of Financial Advisors.
McClanahan said families can partially plan for the event that a loved one might someday need care, but you never know who will actually need that attention. While the majority of people need care at some point, some may die before needing care, he said.
When clients reach their late 50s or early 60s, McClanahan said she often meets with them to begin planning how they will receive care if they need it.
“What families need to do is talk about that possibility in advance,” McClanahan said, including planning who will provide the care and how they will be compensated.
