Around 44.58 million caregivers provide unpaid help to elderly or chronically ill family members in the United States, contributing about $873.5 billion each year to the economy. This amount is 3.2% of the country’s Gross Domestic Product. If caregiving were a company, it would earn more than the biggest businesses, including Apple, Amazon, and Walmart.
This contribution becomes more important as the U.S. population gets older. More Americans are reaching the age of 65 and older, going from 43 million in 2012 to 58 million in 2022—a 34% increase.
As more people live past 80, the need for long-term care and suitable housing will grow, putting extra pressure on family caregivers. About 61% of caregivers manage these duties while working full-time, and some use up to 90% of their retirement savings because of caregiving costs. Stress from caregiving can lead to health problems, adding an extra $28.3 billion in healthcare costs each year.
Respite care and support systems
Respite care services are crucial for family caregivers, offering temporary breaks to prevent burnout and protect mental health. Groups like the Family Friend Neighbor Network have set up programs for respite care, housing support, and caregiver training, helping people manage their caregiving duties.
For those caring for loved ones with complex issues like Alzheimer’s or dementia, respite care is especially helpful. Although Alzheimer’s and dementia caregivers make up just over a quarter of all caregivers, they take on nearly 40% of the caregiving hours, showing the high demands of these roles.
These programs do more than give caregivers a break—they’re crucial. They link them with useful resources, let them meet others in the same situation, and offer training for specific care needs. Policymakers are also looking at financial support options. Some states are creating programs to pay unpaid caregivers, providing financial relief.
On a federal level, there are plans to increase caregiver tax credits and include more Medicare or Medicaid reimbursement options. This support helps you care for your loved ones without affecting your finances.
Training and resources for effective caregiving
Proper training makes caregiving better. Groups like the FFN Caregiver Support Network offer many tools, like First Aid, CPR, and tech help for remote care. This training helps caregivers deal with tough situations and respond to emergencies quickly, making care better for their loved ones.
Joining caregiver training programs also connects individuals with a broader community of support, helping them manage the isolation and stress that often accompany caregiving.
The FFN Caregiver Support Network, for instance, provides participants access to mental health resources, financial planning tools, and a supportive community, reducing the sense of isolation many caregivers experience. Through this holistic approach, caregivers gain practical skills and a network of individuals who share similar experiences and challenges.
The increasing financial burdens associated with caregiving underscore the need for more accessible resources and preparation options. For example, while some caregivers are able to draw upon home equity to meet care-related expenses, this is not a feasible option for everyone, particularly for renters and minority groups who often have significantly lower wealth accumulation.
Older renters, who possess only 2% of the net wealth of homeowners, face limited options for affordable, accessible housing. Furthermore, housing inequality among homeowners affects resources available for caregiving; for example, Black homeowners have median housing equity of $123,000 compared to $251,000 for white homeowners and $270,000 for Asian and multiracial homeowners.
Addressing these disparities requires accessible financial products, affordable housing solutions, and legislative support to ensure that all caregivers, regardless of background, have the resources they need.
Challenges of housing and services in later life
In addition to caregiving, many older adults face the compounded challenge of securing both housing and the services required to live comfortably in their communities.
According to the 2023 Housing America’s Older Adults report, the United States is ill-prepared to accommodate the surge in housing demand from the aging population. In 2021, a record 11.2 million seniors were categorized as “cost-burdened,” meaning they spend more than 30% of their income on housing. This situation is especially pronounced for renters, homeowners with mortgages, and adults over the age of 80, who are also the most likely to require long-term care services.
Long-term care itself comes with substantial financial costs, averaging over $100 per day nationally, making it out of reach for most older adults. When LTC expenses are added to existing housing costs, only 14% of single individuals aged 75 or older can afford a daily visit from a paid caregiver, and just 13% can afford assisted living facilities.
Government-funded rental assistance programs do offer support, yet these resources are limited, and the demand far exceeds supply. Without additional support, many older adults will continue to rely on family and friends, further straining the caregiving system.
The issue of affordable, accessible housing is complicated by the limited availability of homes with senior-friendly features. Currently, fewer than 4% of U.S. homes include essential accessibility features, such as single-floor layouts, no-step entries, and wider doorways.
Consequently, many seniors are forced to remain in homes that do not meet their physical needs, increasing their reliance on family caregivers. For those living in rural areas, this problem is exacerbated by the limited availability of supportive services, creating a significant gap in the resources needed to age comfortably.
Additional challenges and future outlook
As climate change brings increasingly extreme weather patterns, many states favored by older adults, such as Florida, face heightened risks due to severe weather. From February 2020 through April 2023, Florida alone incurred $228 billion in property damage, affecting thousands of seniors who may lack adequate insurance to rebuild or repair their homes. These environmental risks add further complications for older adults who already struggle with limited financial resources and accessible housing.
Mortgage debt is also rising among older Americans, with 41% of homeowners aged 65-79 carrying a mortgage—up from just 24% in 1989. Among those aged 80 and above, 30% are still paying off mortgages, a significant increase from 3% three decades ago.
Many seniors resort to borrowing against their homes to meet basic expenses, further diminishing the equity they might otherwise use to pay for care services. Addressing these financial challenges will require creative mortgage products and financial policies that support aging adults’ needs without compromising their long-term financial stability.
As the aging population continues to grow, the nation faces an urgent need for innovative solutions that address both housing and long-term care. Subsidies for affordable housing and LTC services are critical, yet many older adults are still likely to rely on family caregivers for assistance due to limited resources.
Policymakers and organizations must work together to develop sustainable models of care that support the country’s rapidly aging population, ensuring that all older Americans can live safely, comfortably, and with dignity.
