Retirement Planning for the Sandwich Generation

A growing number of adults find themselves in a unique and often stressful financial position, caring for both their children and their aging parents at the same time. This group is commonly known as the Sandwich Generation. These individuals are pulled in two directions emotionally, physically, and financially. One of the greatest challenges you might face is staying on track with retirement planning while also supporting your loved ones.

Data from a 2023 Pew Research Center study reveals that nearly one in four adults in their 40s and 50s is helping support a parent over the age of 65 while also caring for a child or financially assisting a young adult. This situation can make it difficult to prioritize long-term savings goals like retirement.

The Strain on Personal Finances

When you’re helping children pay for school or living expenses and at the same time covering medical costs or daily needs for elderly parents, your own financial goals can take a back seat. Managing your household expenses while supporting two other generations can lead to a stretched budget, reduced savings, and postponed retirement contributions.

Many caregivers also make career sacrifices to provide family support. Reducing work hours or leaving the workforce altogether may mean less income and fewer opportunities to grow retirement savings.

Tips to Manage the Pressure and Stay Focused

While this dual responsibility can feel overwhelming, there are smart steps you can take to maintain financial stability:

• Make retirement a priority by committing to regular contributions, even if the amount is modest
• Build a practical budget that reflects your current responsibilities and future needs
• Seek out public assistance programs that can reduce the cost of caring for aging relatives
• Encourage open conversations with siblings or adult children about shared responsibilities
• Consult a financial professional to help create a personalized strategy that protects your future

You don’t have to choose between helping others and preparing for your retirement! With the right plan in place, it is possible to do both.

If you find yourself juggling the needs of your family and your own future, let us help. Call us to schedule a retirement planning consultation and take the next step toward long-term financial confidence.