A new study by Health Affairs outlines the high financial burden being shouldered by working-class families who provide care for aging parents and other relatives. These caregiving costs for families is likely to double over the next 30 years, the study found.

The study said that the aging population is creating unprecedented numbers of older Americans with complex and costly health care needs. Many of them rely on family members for caregiving, and the strain this puts on working Americans is increasing over time.

“The older population is growing in size much faster than the younger population is, and the ratio of adults ages 20–64 relative to those ages 65 and older is projected to decline,” the study said. “This is why a much larger share of the working-age population in the future would need to be caregivers just to keep up with the current prevalence of unpaid caregiving, based on age. By mid-century more than 10 percent of all adults ages 20–64 would be caregivers, and their number would increase by more than ten million compared to 2013.”

An aging population relies on family caregivers

The study notes that as of 2011, about ten million Americans ages sixty-five and older were living in setting other than nursing homes and receiving help from caregivers, frequently family members. That assistance included help with bathing, walking, and eating. In addition, there is a growing number of older adults with cognitive impairments such as Alzheimer disease and other dementias. “These people overwhelmingly rely on unpaid help and care provided by family and friends, most commonly by their working-age children,” the study noted.

Providing this help has costs—including lost wages as workers give up hours or take leaves to help with caregiving. The Health Affairs study found that the current costs of caregiving provided by family members is $67 billion. The study projected that those costs will double to $132—$147 billon by 2050, due in part to the growing number of older Americans in need of care.

Higher-income Americans will shoulder more of the burden

The report's author notes that there are limitations to the study, in part because assumptions made about costs and what the system of care will look like in the future.

However, one interesting projection is that caregivers will include a higher proportion of people with higher earning capacities, who will begin facing substantially higher work-related opportunity costs due to caregiving. For example, in 2013, over 50 percent of the opportunity cost was borne by workers who did not have a bachelor's degree; the report projects that by 2050, demographic changes will mean that those with a bachelor's degree will account for 60 percent or more of the opportunity cost burden.

The study concluded by noting the economic and policy implications for these growing caregiving costs. “Alongside negative health consequences and other burdens of providing unpaid care, [these costs] could translate to a growing negative fiscal impact through forgone taxes and potentially larger outlays for social programs,” the study said. “Therefore, future discussions of the role of family caregiving should recognize that this is a finite and increasingly expensive resource. Future policy action could benefit from accounting fully for the costs in addition to the benefits of caregiving, which would help better define the scope and size of programs needed to support caregivers—many of whom struggle to balance their work and caregiving activities.”

Read more:

Instant Insights /

Caregiving costs to working families to double by 2050

More From HR Executive

Related Stories

Recommended For You