• Caregivers who begin their duties at a younger age are at risk of facing up to a 90% deficit in retirement savings.
• Caregiving-induced declines in health contribute an estimated $28.3 billion annually to healthcare costs.
• Alzheimer’s disease or dementia care is valued at $346.6 billion; contributing nearly 40% of the total family caregiving valuation.

Findings released today from a new valuation study conducted by Columbia University Mailman School of Public Health, and sponsored by Otsuka America Pharmaceutical, Inc. (Otsuka), reveal that if family caregiving was a business entity it would be the largest revenue-generating company in the world — exceeding the revenue of Apple (+126%), Amazon (+45%) and Walmart (+31%). The report, “America’s Unseen Workforce: What Will it Take to Change the Future of Family Caregiving?” is the latest installment of a caregiver research series from Otsuka.

The data suggest 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. gross domestic product (GDP). Alzheimer’s disease or dementia care is valued at $346.6 billion; contributing nearly 40% of the total family caregiving valuation, despite only accounting for 25.7% of caregivers.

“As the data tell, the sheer scale of unpaid family caregiving is a hidden economic force that can no longer be ignored,” said John McHugh, Ph.D., MBA, lead researcher and adjunct professor of health policy and management at Columbia University Mailman School of Public Health. “The ramifications are clear: Without robust support for caregivers, both our healthcare system and economy will continue to be overwhelmed.”

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,” said Debra Barrett, vice president, 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.

To read the report, including methodology, click here. To learn more about Otsuka’s caregiver commitment visit: otsuka-us.com/valued-minds/caregiver.

About Otsuka

Otsuka Pharmaceutical Co., Ltd. is a global healthcare company with the corporate philosophy: Otsuka–people creating new products for better health worldwide. Otsuka researches, develops, manufactures, and markets innovative products, with a focus on pharmaceutical products to meet unmet medical needs and nutraceutical products for the maintenance of everyday health.

In pharmaceuticals, Otsuka is a leader in the challenging areas of mental, renal, and cardiovascular health and has additional research programs in oncology and on several under-addressed diseases including tuberculosis, a significant global public health issue. These commitments illustrate how Otsuka is a “big venture” company at heart, applying a youthful spirit of creativity in everything it does.

Otsuka established a presence in the U.S. in 1973 and today its U.S. affiliates include Otsuka Pharmaceutical Development & Commercialization, Inc. (OPDC) and Otsuka America Pharmaceutical, Inc. (OAPI). These two companies’ 2,250 employees in the U.S. develop and commercialize medicines in the areas of mental health and nephrology, using cutting-edge technology to address unmet healthcare needs.

OPDC and OAPI are indirect subsidiaries of Otsuka Pharmaceutical Co., Ltd., which is a subsidiary of Otsuka Holdings Co., Ltd. headquartered in Tokyo, Japan. The Otsuka group of companies employed 34,400 people worldwide and had consolidated sales of approximately USD 14.2 billion in 2023.

All Otsuka stories start by taking the road less traveled. Learn more about Otsuka in the U.S. at www.otsuka-us.com and connect with us on LinkedIn and Twitter at @OtsukaUS. Otsuka Pharmaceutical Co., Ltd.’s global website is accessible at https://www.otsuka.co.jp/en/.

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