If you've noticed that groceries and rent have gone up, you won't be surprised to hear that the cost of aging has skyrocketed, too. For families supporting older loved ones or planning for their own future, this is becoming one of the biggest financial challenges of our time - the rising cost of eldercare.
As we head deeper into 2025, the reality is clear: caring for an aging parent or relative is no longer something that only affects families emotionally, but financially in a way that can feel overwhelming.
Over the past few decades, the cost of eldercare has outpaced inflation at alarming rates. For example, nursing home expenses have nearly tripled since the late '90s, rising almost twice as fast as the cost of everyday essentials. Home care, which used to grow more steadily, has also spiked since the pandemic, with costs jumping nearly 20% in just the last couple of years.
Why? Demand is booming. Baby boomers, the largest generation in American history, are entering retirement, and the majority want to age in place. At the same time, the eldercare workforce has struggled with shortages, burnout, and low wages. This perfect storm means families are competing for limited care, and prices reflect that.
Not all care shows up in a monthly bill. Millions of Americans, mostly women, are providing unpaid care for parents, grandparents, or elderly relatives. It's a role many step into out of love, but it often comes at the expense of their own careers, health, and financial security.
For those in the so-called sandwich generation, juggling kids at home and aging parents, this balancing act is even tougher. Unlike childcare, which eventually eases as children grow, eldercare needs can be unpredictable, long-term, and emotionally heavy.
The rising costs of eldercare can feel discouraging, but there are steps families can take to plan ahead:
The reality is that the eldercare crisis isn't going away anytime soon. With nearly 80 million Americans projected to be over 65 in the next 15 years, costs will continue to rise unless systemic changes are made.
While the headlines may sound bleak, families who plan ahead, both emotionally and financially, can navigate this season with more stability. Aging is inevitable, but a financial crisis doesn't have to be.
