Why family caregivers need a financial lifeline, and how brands can help

Download the full What The Future: Family issue

As America faces a caregiver shortage, 63 million Americans are taking up the slack — but many are going broke doing so. One in four U.S. adults juggles caregiving alongside their jobs and family duties, according to Ipsos research conducted for AARP and the National Alliance for Caregiving.

These caregivers spend an average of $7,200 each year to cover costs. For “sandwich generation” adults caring for aging parents and their kids, the financial toll is devastating: They’re draining retirement accounts, racking up credit card debt and cutting work hours to keep their families afloat.

And more will step up in the years to come. A recent Ipsos study for Thrivent found that nearly one in three Americans expects to be caring for their parents in the future.

Just 17% of caregivers receive some compensation whether through Medicaid, the Veterans Administration or state programs, according to the AARP/NAC Caregiving in the U.S. 2025 report. But too few people know about these programs, and they only offset some of the burden.

Caregivers see tax credits, pay for care and employer paid time off as most helpful. It’s time for policymakers to connect them with these benefits and reduce that financial strain before families reach their breaking point.

For further reading

• Nearly half of Americans don’t have any cash left over after paying bills
• New report reveals crisis point for America’s 63 million family caregivers (AARP)
• Traditional expectations around retirement may be weakening