Findings released from a new valuation study conducted by Columbia University Mailman School of Public Health, and sponsored by Otsuka America Pharmaceutical, Inc., reveal that if family caregiving was a business entity it would be largest revenue-generating company in the world—exceeding the revenue of Apple, Amazon, and Walmart.
The data suggests there are 44.58 million caregivers in the U.S. performing the equivalent of an estimated $873.5 billion worth of labor each year—or 3.2% of the U.S. GDP. Alzheimer’s disease or dementia care is valued at $346.6 billion, contributing to nearly 40% of the total family caregiving valuation, despite only accounting for 25.7% of caregivers.
The data show a tremendous impact on caregiver health and well-being, including a steep impact on generational wealth. Due to reallocating funds to caregiving expenses and foregoing essential retirement contributions, caregivers who begin their duties at a younger age are at risk of facing up to a 90% deficit in retirement savings (depending on salary) by age 65 compared to non-caregivers. This would require up to an additional 21 years of work to recoup the equivalent savings. This is especially important given that 61% of caregivers are juggling careers and home life.
Also alarming, the research found that caregiving-induced declines in health contribute an estimated $28.3 billion annually to healthcare costs, highlighting the profound economic impact of deteriorating caregiver well-being. With the rising aging population, new cases of Alzheimer’s disease and other forms of dementia are projected to increase. As a result, unpaid family caregivers will continue to play a crucial role in navigating the complex system, managing home-related tasks, and providing continuous monitoring for their loved ones.
“These data demonstrate that the seismic impact of family caregiving on the economy continues to grow at an unsustainable pace and is one of the biggest challenges of our time,” says Debra Barrett, vice president of corporate affairs at Otsuka. “While progress is being made, attaining comprehensive systemic change requires a commitment across federal and state government, employers, and individuals. At Otsuka, we are leading the way by providing all employees access to comprehensive caregiver resources through our Caregiver Navigator program, which offers personalized care and emotional support. We all carry the responsibility to address the caregiving crisis and must work together to make a meaningful impact on America’s unseen workforce.”
The findings of this valuation study highlight the need for solutions at national, state, and employer levels, as well as opportunities for individuals to prepare for potential future caregiving.
- Employers can better support caregivers by leveraging existing policies to introduce new benefits.
- State policymakers should prioritize benefits programs for family caregivers, such as payment for services and adding health benefits, in addition to updating provider reimbursement policies and regulations to better incorporate caregivers in medical decision-making.
- Federal policymakers should invest in measures like expanding caregiver tax credits, offering reimbursement options under Medicare and Medicaid, and solidifying proven concepts from the Guiding an Improved Dementia Experience (GUIDE) Model.
- For young people, planning for future caregiving needs is as essential as planning for any long-term financial goal or emergency, including having conversations with your loved ones about their wishes, starting a caregiver savings account and exploring long-term care insurance.
