AARP data shows care costs outpacing senior income

Long-term care services in the United States increased in price by roughly 50% between 2019 and 2024. A new report from AARP states that income for older households grew by only 22% during that same five-year period. This widening gap has made essential services less affordable for middle-class families.

Alan Weil, senior vice president for public policy at AARP, identified the disparity between rising costs and stagnant wages as the central issue. He noted that the financial pressure has intensified significantly for those who rely on private funds for their care needs.

The report details that pricing varies based on the skill level of the provider. Weil explained that basic assistance, such as help preparing meals, costs less than clinical services. However, he observed that many informal caregivers are forced to perform nursing tasks for which they lack training. This shift places the physical and financial burden directly on family members.

Weil described the financial strain as a squeeze from both directions for the so-called sandwich generation. These individuals often pay for their parents' care while simultaneously trying to save for their children's education. Weil stated that money spent on elder care is money not set aside for a child's college tuition.

The report suggests that planning ahead is the most effective strategy for families facing these costs. Weil encouraged households to investigate assistance programs that match their specific needs. He noted that some individuals qualify for Medicaid, a joint state and federal program with eligibility rules that differ by location.

Weil advised families not to assume they must pay entirely out of pocket. He recommended contacting a state Medicaid office to verify eligibility. He also pointed readers to AARP.org, where tools help users find assistance programs available in their specific area.