You probably know someone who left a job to care for an aging parent, or maybe you have done it yourself already. What you might not know is exactly how much that sacrifice costs in dollars, and a new study puts the number at a staggering amount.
The AARP Public Policy Institute just released its “Valuing the Invaluable 2026” report, and the headline figure alone should stop you in your tracks. Family caregivers in the United States provided care worth over $1 trillion in economic value during 2024, all while most received absolutely zero compensation.
If you have aging parents, a spouse with health issues, or a family member with disabilities, this research speaks directly to your financial future right now. The numbers tell a story that affects roughly 59 million Americans today, and understanding them could help you avoid a financial crisis down the road.
The trillion-dollar workforce hiding in plain sight
The scale of unpaid family caregiving in America has reached a point where ignoring it is no longer an option for anyone planning their finances. Some 59 million Americans provided care for adult family members, neighbors, or friends in 2024, totaling 49.5 billion hours of work, according to AARP research.
That caregiving workforce equals about 23.8 million full-time workers, representing roughly 17 percent of the nation’s entire full-time labor force, the report found. If family caregiving were counted as a formal industry, it would rank among the largest and most valuable labor forces in the entire American economy.
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“That $1 trillion reflects the everyday reality of millions of families, people stepping in to care for loved ones in ways that are both deeply personal and essential to how our country functions,” said AARP CEO Myechia Minter-Jordan.
The $1.01 trillion figure exceeds both the $967 billion that private businesses spent on health care and the $932 billion spent on Medicaid during 2024.
What an hour of family care costs now
The average economic value of one caregiving hour jumped from $16.59 to $20.41 in 2024, reflecting surging home care costs and higher direct care wages nationwide. That means if you spend 27 hours per week providing care, which is the current national average, your unpaid labor is worth roughly $551 every single week.
Over a full year, that amounts to more than $28,600 in economic value; you are essentially donating to the health care system without receiving any compensation. The per-hour caregiving rate varies dramatically by location, ranging from $14.12 in Louisiana to $27.05 in Washington state, according to AARP data.
These state-level differences reflect regional variation in professional wages and the local cost of hiring professional home care workers instead of doing it yourself.
How caregiving intensity has increased in recent years
The demands placed on family caregivers have grown substantially since AARP last published this research, with more people taking on complex medical tasks at home.
About 57 percent of family caregivers now assume high-intensity roles, meaning they handle tasks traditionally performed by professional health care workers. These tasks include managing medications, coordinating with multiple doctors, performing wound care, and helping with mobility that requires physical strength and skill.
The average caregiver now spends 27 hours per week providing care, and many report being effectively on duty around the clock for loved ones who cannot be left alone.
The financial damage caregiving does to families
Nearly half of family caregivers nationwide report experiencing at least one negative financial impact because of their caregiving responsibilities, according to AARP research. These impacts include using up personal savings, taking on debt, leaving bills unpaid, and being unable to afford basic necessities like food, the research shows.
Common financial consequences for family caregivers:
- Drawing down retirement savings earlier than planned to cover care expenses or replace lost income from reduced work hours
- Taking on credit card debt or personal loans to pay for medical supplies, home modifications, or professional respite care
- Leaving the workforce entirely or reducing work hours, which can damage future Social Security benefits and career advancement opportunities
- Falling behind on personal bills, including mortgage payments, utilities, and other essential household expenses, which keep accumulating
- Forgoing personal health care, including preventive screenings and necessary treatments, because of time constraints and financial limitations
One in five caregivers reports being unable to afford basic needs, and one in four is actively taking on debt specifically because of their caregiving responsibilities. Seven in 10 family caregivers are employed, but many face significant disruptions at work and lack access to employer benefits that could provide meaningful support.
THICHA SATAPITANON/Shutterstock
Why professional long-term care keeps getting further out of reach
The cost of professional long-term care services surged dramatically between 2019 and 2024, making paid alternatives increasingly unaffordable for middle-income families. Home care and assisted living costs increased by nearly 50 percent during that five-year period, far outpacing the 22 percent income growth among adults 65 and older.
Adult day services rose 33 percent, and nursing home costs climbed 25 percent during the same period, according to an AARP Public Policy Institute report.
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The national cost of long-term care now ranges from roughly $26,000 annually for adult day services to nearly $128,000 for a private nursing home room.
Compare those figures to the median financial assets of about $50,000 for households headed by someone 75 or older, barely enough for one year of basic care.
The Medicaid gap that catches middle-income families off guard
Middle-income older adults face the most intense financial pressure because they earn too much to qualify for Medicaid but far too little to afford professional care. Many families discover this eligibility gap only after a health crisis strikes, leaving them scrambling to find alternatives while rapidly burning through their limited savings.
If your parent has Social Security plus a modest retirement income, they may exceed Medicaid thresholds while still being completely unable to afford professional long-term care. This structural barrier forces millions of family members into unpaid caregiving roles they never planned for and cannot afford to sustain over multiple years.
What a California caregiver’s story reveals about the real cost
Lori Carter, 57, moved from California back to her childhood home in Tucson, Arizona, to care for her 93-year-old mother, Bea, full-time, according to AARP. Carter deliberately shifted into a remote corporate communications role to accommodate caregiving demands, but was laid off in January amid workforce AI transitions.
Her mother requires help with nearly all daily activities, leaving Carter effectively on duty around the clock with limited ability to reenter the workforce.Â
Because her mother’s income slightly exceeds Medicaid eligibility thresholds, Carter remains ineligible for any paid caregiving support through state programs at this time. Her mother’s modest savings would be spent quickly on professional care, leaving tough choices like selling the family home, Carter told AARP researchers.
Tax credits and legislation that could provide some relief
AARP is advocating for federal legislative proposals that may help defray some of the financial burden that family caregivers currently shoulder entirely on their own. The bipartisan Credit for Caring Act would create a $5,000 tax credit for working families to help offset caregiving expenses that currently receive no tax recognition.
The Lowering Costs for Caregivers Act would allow caregivers to use health savings or flexible spending accounts to cover qualified medical expenses on behalf of their parents. Both bills have been sitting with the House Ways and Means Committee since early 2025, with no clear timeline for advancement to a full congressional vote.
At the state level, Oklahoma became the first state to pass a comprehensive caregiver tax credit in 2023, with Nebraska following in 2024 and 12 states considering similar legislation.
Steps you can take to protect your family’s finances
If caregiving is in your future, or already part of your present reality, taking proactive steps now can help you avoid some of the worst financial consequences.
Planning considerations for current and future caregivers:
- Have honest conversations with aging parents about their financial resources, insurance coverage, and preferences for care before a health crisis forces rushed decisions.
- Research your state’s Medicaid eligibility rules and understand exactly where the income and asset thresholds fall relative to your family member’s current financial situation.
- Investigate whether your employer offers any caregiver benefits, including flexible scheduling, paid family leave, or employee assistance programs that provide respite resources.
- Consider long-term care insurance for yourself while you are still young and healthy enough to qualify for reasonable premiums, despite the product’s limitations.
- Connect with your local Area Agency on Aging to learn about community resources, respite care options, and support programs that may be available in your area.
You can also access AARP’s state-by-state Family Caregiver Resource Guides to find programs and services available in your community right now. Through AARP’s partnership with United Way Worldwide, caregivers in 28 states can call 211 to access local support services, including respite care and transportation assistance.
What the $1 trillion figure really means for American families
The trillion-dollar valuation represents a massive transfer of labor and resources from working families to a health care system that has yet to figure out how to support them. Family caregivers are holding up a system that millions of Americans rely on every day, but they do so with little recognition and almost no financial support.
Relying on families to juggle caregiving responsibility alone is unsustainable, according to Rita B. Choula, senior director of caregiving at the AARP Public Policy Institute. The economic value of family caregiving first exceeded $350 billion in AARP’s 2006 report, reached $600 billion by 2021, and now exceeds $1 trillion.
That trajectory suggests the burden will only grow heavier as America’s population ages, making financial planning for caregiving more important than ever for your family.
Related: AARP sounds alarm on Social Security, Medicare