Family caregivers spend $11,508 annually, up 60% since 2021

Family caregivers in the United States now spend an average of $11,508 per year supporting a relative or friend, a figure nearly 60% higher than the $7,242 reported in 2021. An AARP report released this week details how these out-of-pocket expenses have surged over the past five years. The data lands just days before the midterm elections, a moment when financial pressure on older adults is poised to shape voting patterns.

The financial strain is visible in daily decisions. Barbara Weigand, 83, of North Canton, Ohio, recently withdrew $4,000 from her retirement account to cover costs for shoulder surgery and bladder cancer treatment. She stated that her monthly income would not cover these new medical expenses. Weigand is currently enrolled in a Medicare Advantage plan and began searching for new coverage when the open enrollment period started in mid-October.

Enrollees face a complex set of changes for 2027. These include higher Part D out-of-pocket caps, the end of temporary federal Part D premium subsidies, and new drug price negotiations. Some insurers have also placed caps on the number of people who can enroll in Advantage plans or have pulled out of specific markets. Juliette Cubanski, director of KFF’s program on Medicare policy, described the enrollment period as an opportunity to evaluate coverage for better access to care at potentially lower costs.

Prescription drug affordability remains a major hurdle. A March KFF survey found that about 4 in 10 U.S. adults skipped taking medication as prescribed in the past year due to costs. Weigand is considering rationing her own drugs to stretch her budget. She described thinking about taking medication every other day instead of every day to make it last longer.

The Trump administration has prioritized lowering drug prices. In September, officials announced that all 50 states would join a program providing most-favored-nation pricing to some drugs within Medicaid. This initiative aims to bring the net price of selected drugs down to levels paid in certain other countries. However, many seniors still feel the weight of co-pays and premiums.

The Social Security Administration also announced this month that the annual cost-of-living adjustment will rise by 3.6% starting in 2027. This increase adds $75 per month for the nearly 72 million people who receive monthly Social Security benefits. About 7.3 million beneficiaries who receive Supplemental Security Income will also see this adjustment.

Despite the raise, the program faces a funding shortfall. The Social Security and Medicare trustees’ report from June states that the combined trust funds will be unable to pay full benefits beginning in 2034. After that date, incoming revenue would cover only about 83% of scheduled benefits. Congress will need to address this gap in the upcoming session.

Voting intent among older adults is high. An AARP poll conducted in early October found that 83% of voters over age 50 say they are extremely motivated to vote in the midterms. Matt Hogan, a partner at Impact Research, advised candidates that Social Security and Medicare should be central to their messaging to make inroads with these voters.