Market reference guide: This article covers materials from both Korea and the United States. Each piece of information is marked in the text as 🇰🇷 Korea or 🇺🇸 U.S. to indicate which country it refers to.
The desire to be by your parents' side is natural. But as caregiving stretches on, something quietly accumulates beside the emotional weight—money worries. Cutting back hours at work or quitting altogether, drawing down savings, and at some point staring blankly at your bank balance—most caregivers have experienced this at least once. This article confirms that weight in numbers and explores policies that can help.
🇰🇷 Korea According to a 2024 issue note from the Bank of Korea, the average monthly nursing care cost at long-term care hospitals is 3.7 million won, reaching 1.7 times the median income of households headed by people over 65. This means that nursing care costs alone—separate from treatment expenses—already far exceed the average senior household income. In practice, complaints of over 4 million won per month are common, and the term "caregiver bankruptcy" has long since become everyday language. 🇰🇷 Korea In 2025, South Korea officially entered a hyper-aged society (population aged 65 and over exceeding 20%), and the number of families bearing this burden will continue to grow.
🇺🇸 U.S. The situation is similar in the United States. According to a 2025 report from AARP and NAC, there are currently approximately 63 million family caregivers in the U.S. One-third have stopped saving, 24% have already depleted short-term savings, and 13% have tapped into long-term savings such as retirement funds. 🇺🇸 U.S. Researchers at the University of Pennsylvania estimate that the combined loss of income, career advancement, and quality of life for a middle-aged daughter caring for her mother amounts to 80,000–100,000 dollars annually. Caregiving carries far larger hidden costs.
Economic burden also translates into health problems. 🇺🇸 U.S. According to one study, approximately 40–70% of caregivers experience clinical depression symptoms, with financial pressure and difficulty coordinating care identified as factors that further increase this risk. 🇺🇸 U.S. In another survey, 47% of caregivers reported that their physical health deteriorated after they began caregiving. The numbers show that a thinning wallet goes hand in hand with shrinking physical and emotional reserves.
Fortunately, systemic changes are beginning to take shape. 🇰🇷 Korea The government plans to begin applying health insurance coverage for nursing care costs at approximately 200 medical-focused long-term care hospitals starting in the second half of 2026, expanding to 350 facilities by 2028 and 500 facilities (100,000 beds) by 2030. Additionally, beginning in 2026, the out-of-pocket cost-sharing rate for nursing care for severe patients in long-term care hospitals will be significantly reduced from the current 100% to approximately 30%. 🇺🇸 U.S. In the United States, the federal Congress introduced the "Credit for Caring Act" in 2025, promoting up to 5,000 dollars in annual tax credits per caregiver, and as of April 2025, 15 states have introduced related bills with 5 states already implementing them. 🇺🇸 U.S. Under current IRS regulations, caregivers can also apply for the Child and Dependent Care Credit, claiming up to 3,000 dollars for one dependent or up to 6,000 dollars for two or more dependents covered by caregiving costs.
Many people know about these programs but fail to apply. 🇺🇸 U.S. Approximately half of caregivers (47%) receive no formal support such as financial assistance, counseling, or respite care, and 88% report that they need more support. This is because many are unaware that such benefits exist, or they lack the time and energy to look into them. The first step you can take is to review the list of available programs based on which country you currently live in.
Sources: Bank of Korea BOK Issue Note (March 2024, No. 2024-6) / Republic of Korea Policy Briefing Changes in Health and Welfare Policies for 2026 (December 2025) / Dementia News Coverage on Nursing Care Cost Inclusion (December 2025) / CareYou News Planning Report on Korean Caregiving System (March 2026) / AARP and NAC "Caregiving in the U.S. 2025" / Penn LDI "America's Caregiver Crisis" (May 2026) / A Place for Mom Caregiver Statistics (2026) / SeniorLiving.org Family Caregiver Annual Report (2025) / AARP "Caregiving in the U.S. 2025" / HHS ASPE "Review of Federal and State Caregiver Tax Credit Laws and Bills" (January 2026) / A Place for Mom "Caregiver Tax Credit and Tax Implications" (2026) / NCBI "Financial Pressures of Family Caregiving" (AARP, 2025)
Note: This article was compiled by AI from the sources cited above. We strive for accuracy, but for decisions about your specific situation, please confirm the latest guidance from a professional or the relevant agency.