The Economic Cost of Dementia

Why dementia is one of the costliest health conditions, how much of the cost falls on families, and what research and policy aim to do.

Dementia is a group of conditions, including Alzheimer’s disease, that cause declining memory, thinking and ability to carry out daily activities. Because the risk rises steeply with age, the number of people with dementia is growing as populations age.

The scale

The World Health Organization estimated that around 55 million people were living with dementia worldwide in 2019, with nearly 10 million new cases each year. Numbers are projected to rise substantially by 2050, especially in low- and middle-income countries, including India.

The cost

The WHO estimated the global cost of dementia at around 1.3 trillion dollars in 2019. Costs fall into three categories:

Medical costs: diagnosis and treatment.
Social care costs: paid care at home or in care homes.
Informal care costs: the value of unpaid care by family and friends.

Informal care makes up around half of the global cost, and an even larger share in low- and middle-income countries, where formal care services are limited.

Why it is so costly

Dementia often lasts many years, and people increasingly need help with everything from managing money to eating. Care needs are long-lasting and intensive, and there is currently no cure.

Prevention and research

The Lancet Commission on dementia has estimated that a significant share of dementia cases, around 40 percent in its 2020 report and more in its 2024 update, might be prevented or delayed by addressing risk factors such as low education, hearing loss, high blood pressure, smoking, physical inactivity, air pollution and untreated vision loss. Addressing these could have large economic benefits.

New drugs that modestly slow Alzheimer’s in early stages have been approved in some countries, but they are expensive and have limited effects.

Hidden costs to a family

A woman's father develops dementia. At first, she helps with shopping and bills. Over time, he needs constant supervision, and she reduces her working hours, losing income and pension contributions. Her own health suffers from stress. None of this appears in medical bills, but it is a major economic cost of the disease.

Thinking dementia is a normal part of ageing

Memory can change with age, but dementia is a disease, not an inevitable part of ageing. Many older people never develop it, and reducing risk factors can lower the chance of developing it.

Key takeaways

Around 55 million people lived with dementia worldwide in 2019.
The WHO estimated its global cost at around 1.3 trillion dollars.
About half the cost is unpaid care by families, more in poorer countries.
Addressing risk factors like hearing loss, blood pressure and untreated vision loss could prevent many cases.