Dementia is projected to cost $818 billion this year, with individuals and families bearing more than three times the cost compared with health systems, according to a study in Alzheimer’s & Dementia.Why It’s Relevant
The economic impact of dementia is typically estimated using medical and long-term care costs. But as most patients with dementia are supported by unpaid caregivers, direct health care costs are only one part of the equation. Using data from the nationally representative Health and Retirement Survey, researchers estimated the total direct, indirect (foregone earnings), and intangible (quality of life) costs of dementia—information that can help guide policymakers.
By the Numbers
- In 2026, 5.7 million Americans ages 51 and older are living with dementia, of whom 5.1 million are 65 and older.
- There are 5.2 million caregivers of people with dementia who will provide 6.8 billion hours of care this year.
- Reductions in quality of life among people living with dementia account for $320 billion in costs; these individuals also experience $14 billion in lost earnings.
- Medical and long-term care costs $222 billion, including $46 billion in out-of-pocket costs from patients and families.
- Meanwhile, caregivers provide $237 billion in unpaid care while also shouldering $15 billion in lost quality of life and $9 billion in lost earnings.
What’s More
Though non-Hispanic White individuals account for 60% of people living with dementia, they represent about 66% of the estimated total cost. Meanwhile, non-Hispanic Black and Hispanic individuals with dementia account for 21% and 19% of the dementia population, respectively, but only 17% of the total cost each.
The Other Side
The study estimated the number of people living with dementia via telephone interviews, which may have introduced biases. Similarly, the number of caregivers was self-reported by those receiving care, and caregivers more often report providing help than recipients report receiving it.
Takeaway Message
With an aging population and dementia prevalence expected to rise, the researchers emphasized the urgency of addressing gaps in long-term care financing, expanding support for caregivers, and investing in effective prevention and treatment models.
Related Information
Source
Johanna Thunell, et al. The cost of dementia in the United States in 2026. Alzheimer’s & Dementia. Published online June 24, 2026. doi:10.1002/alz.71480
(Image: Getty Images/iStock/Alican Lazutti)
