Clients & Prospects: The True Costs of Caring for Aging Parents
- Michelle Muhammed
- Nov 14, 2025
- 3 min read
As families gather for the holidays, there's a conversation many are avoiding, but shouldn't. The numbers around caring for aging parents have shifted dramatically, and the financial implications are hard to ignore.
Quick Facts That Might Shock You:
1 in 4 Americans is now a caregiver (63 million people—up 45 percent in just 10 years) 1
Round-the-clock home care now costs nearly $290,000 annually 2
23 percent of caregivers go into debt; 13 percent raid their retirement accounts 3
88 percent of family caregivers say they're not getting enough support 4
The average caregiver spends 27 hours per week—nearly a full-time job 3
If you or someone you know has family members over the age of 75, these statistics may already be on your mind.
The New Reality of Caregiving
We've been seeing this firsthand with our clients. Caregiving today isn't what it was for previous generations. It's longer (30 percent provide care for 5+ years), more intensive (55 percent perform medical functions like administering injections), and far more expensive. 3
The cost of a home health aide has jumped from $20 to $33 per hour since 2015. Meanwhile, Medicare only covers nursing home care for 100 days maximum, and only 10 percent of adults over 65 have long-term care insurance. 2,5
As one caregiving professional put it: "The new inheritance is not having enough money to give to kids but to have enough money to cover long-term care costs." 2
The "Sandwich Generation" Crisis
Nearly half of caregivers under 50 are simultaneously caring for aging parents and raising children under 18. 3 The financial strain is challenging families:
One-third have stopped saving entirely
24 percent have exhausted emergency funds
13 percent are tapping retirement accounts 3
The Family Conflict No One Talks About
Here's what we see repeatedly: The caregiver burden falls on whoever lives closest (40 percent of caregivers live with their care recipient), creating resentment among siblings and family conflict that makes an already difficult situation worse. 3
What Smart Families Are Doing
The families navigating this successfully aren't waiting for a crisis. They're:
Having the uncomfortable conversations now—about wishes, finances, and responsibilities
Getting legal documents in order (wills, power of attorney, healthcare directives)
Running the numbers on potential care costs using online calculators
Building support networks before they're needed
Understanding what insurance does and doesn't cover
How We're Helping
As financial professionals, we can't make these family dynamics easier, but we can help you prepare for the financial realities. We're helping clients calculate potential costs, coordinate with estate attorneys, and build strategies that aim to protect the parents' care needs and the family's financial future.
The Bottom Line
This isn't about if—it's about when and how much. The families that fare best are those who look ahead, communicate openly, and seek professional guidance before the crisis hits.
If this hits close to home, don't wait. The earlier we start strategizing, the more options you'll have when the time comes.
Financial Guidance for Every Stage of Life
M&M Wealth Advisory, led by Michelle V. Muhammed, CFP®, CDFA®, ChFC®, provides specialized wealth management for high-net-worth individuals facing financial transitions. Whether planning for retirement, navigating divorce or widowhood, managing a financial windfall, or planning a tax-efficient wealth transfer, Michelle offers tailored guidance to help you make informed decisions.
With a focus on comprehensive financial planning, tax-efficient investing, divorce financial planning, estate planning coordination, and executive compensation strategies, Michelle helps clients build long-term financial confidence.
Take control of your financial future. Schedule a consultation today!
Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Partners and M&M Wealth Advisory are separate entities.
Disclaimer: There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Sources
1. AARP, July 24, 2025
2. The Wall Street Journal, September 4, 2024
3. Caregiving in the U.S. Research Report, July 2025
4. Senior Living, February 14, 2025
5. LongTermCare.gov, August 2025
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