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Approximately 59 million Americans provided care for an adult family member, neighbor, or friend in 2024, according to a new report from the AARP Public Policy Institute.
The report estimates that their efforts will generate up to 49.5 billion hours of care and represent a total annual economic value of $1.1 trillion. The Public Policy Institute is the policy research arm of AARP, a nonprofit, nonpartisan organization representing individuals age 50 and older.
Family caregivers typically provide long-term services and support, but almost all of them are unpaid, the study found. The average hourly wage for that work in 2024 was $20.41.
Their work includes essential care for adults, such as administering medications, arranging care appointments, and assisting with other needs such as bathing and dressing and filing insurance claims, AARP CEO Mietia Minter-Jordan said at a press conference about the study.
“Many people are doing all of this while working, raising children, and trying to survive financially and emotionally,” Minter-Jordan said.
According to AARP, the $1.1 trillion economic value of family care exceeds total federal, state, and local Medicaid spending of $932 billion and out-of-pocket medical costs of $557 billion.
This is AARP’s seventh report on long-term care costs. The first report estimated that the economic value of long-term care in 2006 was $350 billion, with an average hourly cost 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 director of advocacy and engagement, said at a press conference. “They need economic relief.”
How policy changes can help defray costs
In recent presidential elections, both Democratic and Republican candidates have said they support financial support for family caregivers, Leamond said.
AARP said it expects lawmakers and candidates seeking the presidential office to address the issue ahead of the midterm elections.
Some states have made progress. In 2026, 12 states are considering legislation that would provide tax credits to caregivers, according to AARP.
In 2023, Oklahoma becomes the first state to offer a caregiver tax credit, followed by Nebraska in 2024.
AARP is also advocating for federal legislative proposals that could help families pay for care. The bipartisan Long-Term Care Credit Act calls for a $5,000 tax credit for families to offset the cost of care. Meanwhile, another bipartisan initiative, the Caregiver Cost Reduction Act, would allow caregivers to use health savings and flexible spending accounts for qualified medical expenses on behalf of parents or stepparents.
Both bills have been introduced to the House Ways and Means Committee since early 2025.
“It’s like a contagious disease.”
Carolyn McClanahan, a physician, certified financial planner, and founder of Life Planning Partners in Jacksonville, Fla., said AARP’s new $1 trillion figure for the economic value of family care is likely an underestimate.
“When you have this much personal care, it’s like an epidemic,” said McClanahan, a member of the CNBC Financial Advisors Council.
McClanahan said families can partially plan for the possibility that a loved one may someday need care, but they don’t know who will actually need it. Most people will need care at some point, she says, but some may die before they need it.
McClanahan said once a client is in their late 50s or early 60s, he typically starts talking with them and planning how they will receive care if they need it.
“What families should do is discuss this possibility in advance, including planning who will provide care and how they will be compensated,” McClanahan said.
