Our country’s 40 million unpaid family caregivers devote a large portion of their own money toward the care of their loved ones.
They’re spending an average of $6,954 a year — nearly 20 percent of their income — on out-of-pocket (OOP) costs related to caregiving, according to a new AARP study, “Family Caregiving and Out-of-Pocket Costs: 2016 Report.”
Hispanic/Latino and low-income family caregivers spend even more: an average of 44 percent of their total annual income.
And that’s on top of other financial strains many caregivers face, such as needing to cut back on work hours or take unpaid leave, says Nancy LeaMond, Chief Advocacy and Engagement Officer at AARP. “The strain can be enormous and may put their own financial and retirement security at risk.” She adds that passing the bipartisan Credit for Caring Act, which provides a federal tax credit of up to $3,000, “would give some sorely needed financial relief to eligible family caregivers.”