Gone are the days when a dog spent most of its time in a doghouse in the backyard. Today, pets are considered family members, companions that provide emotional support and offer a welcome wag when we come home. Yet, pet parents often fail to estimate the true cost of ownership, which can become a significant financial burden for many.

Pet benefits are a low-cost way to help employee pet owners cover expenses such as vet bills and unexpected medical needs. Not sure of the value? Let’s take a closer look at the benefits.

The Cost of Owning a Pet in 2025

In 2024, 45.5% of U.S. households owned a dog, and 32.1% owned a cat, totaling 163 million dogs and cats across the country. That data, shared by the American Veterinary Medical Association, demonstrates how pets have become an integral part of family life for many American households. But what does it truly cost to own and care for a pet?

The 2025 Pet Lifetime of Care Study from Synchrony offers clarity on the amount people spend on their pets. The study found that 8 out of 10 owners underestimate the cost of pet ownership, putting financial strain on many budgets. The survey revealed:

• Caring for a dog for 15 years costs between $22,125 and $60,602, which is up 11.65% from 2022.
• Caring for a cat for 15 years ranges from $20,073 to $47,106, with costs rising 19.4% since 2022 alone.

That’s not necessarily for a pampered pooch, either, but for expected pet care like vet appointments, food, and grooming. While numerous variables exist, overall costs are growing year-over-year at increasingly fast rates. Another example comes from the American Pet Products Association, which reveals that $152 billion was spent in 2024 on pets in the U.S., including:

• $65.8 billion in pet food and treats
• $33.3 billion in supplies, live animals, and over-the-counter medication
• $39.8 billion in vet care and product sales
• $13 billion in other services

Those figures are expected to reach $157 billion in 2025, just one year later.

Covering the Cost of Pet Care

The Synchrony study also demonstrated that 3 out of 4 pet owners have experienced unexpected pet care costs that exceed $250. Yet, in those responding to the survey, just 31% of pet owners say they can manage those major pet expenses.

An increasing number of owners are turning to credit cards to cover costs, with as many as 58% of people reporting the need to do so. Yet, only 20% have adequate insurance that could offset the financial burden.

Why Provide Pet Benefits as a Component of Employee Benefits?

The data is clear – employees pay increasing amounts for pet care year after year. Pet insurance can drastically lower costs and make pet ownership more affordable.

From the employer perspective, pet perks offer many benefits as well:

Keep employees stress-free: Multiple studies show that pets reduce stress and lessen anxiety. Pet-friendly policies can even welcome pets into the office as a de-stressor.

• Financial security: The cost of a single vet appointment can be enough to keep pet parents from scheduling a visit. Pet insurance reduces out-of-pocket costs and financial strain.
• Meet employee needs: Employee benefits are changing with an increased number of workers wanting more specialized benefit packages
• Attracting top talent: Gen Z and millennials require an employee benefits package that caters to every member of their family, including their pets.
• Improve retention: Benefits are now becoming a key driver in retention strategies, with many employees willing to leave their current job for one with better benefits.  

As pet care costs continue to rise, it is increasingly important to consider the value of pet-specific benefits as a key component of any employee benefits package. Here’s the real value – it’s easier and more affordable than you realize to implement such a plan within your company.

A Win for Human Resources and Brokers

Whether you’re a human resource manager looking for a way to boost employee benefits programs to entice top talent or a broker looking for ways to enhance offerings, Pet Benefit Solutions offers a unique strategy that’s more accessible and in demand than ever.

For Employers

Give employees peace of mind with a voluntary pet benefits plan.

You can help bring pet care costs with a voluntary pet benefits program that’s easy to offer, easy to use, and a simple fit within your operations. Consider adding both:

• Pet insurance and wellness plans: look for low-deductible, high-reimbursement plans with comprehensive coverage
• Pet insurance alternatives: discount care plans offer discounts on pet products, veterinary care, and prescriptions are included in the plan.

For Brokers

By including pet benefits in your portfolio, you gain the competitive advantage in a crowded benefits market. Pets Benefit Solutions partners with some of the country’s largest insurance brokers. Our plans include:

• Plans exclusively designed for employers and brokers
• Personalized account management with client services
• Pet-loving benefits experts to support the process
• Full-service group administrator portals for easy implementation 
• Pet insurance and pet insurance alternatives

Pet Costs Are Rising: Meet Employee Needs

As the cost of pet care continues to rise annually and inflation drives the cost of everyday goods even higher, employees are increasingly seeking and valuing pet benefits.

Provide support with custom-designed plans that lower pet care costs and improve loyalty and retention. Contact Pet Benefit Solutions now to see just how fast and easy it is to incorporate pet insurance and pet insurance alternatives into your existing benefits strategy.