Understanding the Caregiver's Cost of Care

Caregiving rarely begins with a plan. It begins with a moment. A fall, a diagnosis, a conversation that shifts everything. What follows is not just care, but a cascade of financial impacts that most families are forced to navigate in real time.

Caregiving Costs in Canada

Unpaid caregivers spend 5.7 billion hours each year caring for loved ones¹ and provide 75 percent of all home care. This work is valued at an estimated $24 to $31 billion annually and is projected to reach $128 billion by 2035². But these figures don’t reflect what families actually experience: the time, energy, and financial strain behind them, which together make up the full impact of caregiver burden.

Almost two-thirds of caregivers report cost of living stress directly tied to caregiving³, and more than a quarter have lost wages due to time spent attending appointments for the people they support⁴. What often begins as time away from work can quickly turn into ongoing financial pressure. To manage this, many caregivers take on extra hours or a second job, even as their caregiving responsibilities continue to grow, creating a cycle where more care often requires more income just to keep up³.

As these pressures persist, they extend beyond income into everyday financial decisions. Nearly one in four caregivers spends more than $1,000 per month out of pocket, while one in 10 must leave bills unpaid or draw on long-term savings just to keep up². These are not isolated monthly costs, but recurring demands that steadily erode financial stability.

Long-Term Financial Impact of Caregiving

Over time, these ongoing pressures accumulate into something less visible but more enduring: reduced financial resilience. Lost wages, delayed retirement, and eroded savings quietly compound into diminished security for the caregiver’s own future.

These pressures are not evenly distributed. For those raising children while also supporting an aging parent, the financial burden is compounded across generations. 35 percent of sandwich caregivers report direct financial hardship due to their caregiving responsibilities, compared to 25 percent of those caring for only one generation⁴. This strain extends into career progression, with 67 percent of sandwich generation caregivers concerned about the impact on their advancement⁵, reflecting the trade-offs between caregiving demands and long-term income growth.

Together, these patterns show that caregiving affects not only day-to-day finances, but long-term financial security and retirement stability.

The Traps That Catch Families Off Guard

Several common patterns repeatedly affect caregivers.

The first is assuming current care arrangements will continue without change. Many families rely on informal support systems that function until a health event disrupts them, often when care needs are highest, and options are most limited.

The second is managing costs in isolation. Many caregivers pay for expenses as they arise, focusing on immediate needs rather than the cumulative cost of care or available supports. At the same time, finding relevant resources and support is difficult².

The third is limited financial and legal planning. Many families do not have updated powers of attorney, advance care directives, or a clear understanding of available benefits before a health event occurs. In Canada, advance care planning remains limited⁶, leaving many households making financial and care decisions in crisis rather than in advance. When this happens, decisions are often made under pressure, which can increase both stress and costs.

Planning Changes the Outcome

The patterns in caregiving are not fixed. Earlier planning can meaningfully reduce both financial strain and care disruption. The families who navigate caregiving with the least disruption are rarely those with the most resources. They are the ones who started planning before a crisis made the decisions for them. Planning ahead and knowing what support exists can significantly change both outcomes and costs.

Sources

1. National Association of Federal Retirees – Caregivers need support now (2024)

2. National Seniors Council – Dialogue - Caregivers of Older Adults (2025)

3. The Canadian Centre for Caregiving Excellence – Caring in Canada: Survey insights from caregivers and care providers across Canada (2024)

4. Statistics Canada – “Sandwiched” between unpaid care for children and care-dependent adults: A gender-based study (2024)

5. Maple – Maple Report: Only 15 percent of Canadian family caregivers say the health-care system meets their needs all the time (2025)

6. Canadian Hospice Palliative Care Association – Advanced Care Planning in Canada Pan-Canadian Framework (2020)