For decades, the term “sandwich generation” has generally applied to adults (mostly women) taking care of their aging parents and minor children at the same time.
But as baby boomers age out of the sandwich generation, their replacements, estimated to be about a quarter of U.S. adults, are facing new challenges. For one, Gen-Xers and millennials are beginning to take care of their (now aging) parents while still supporting adult kids — at home or otherwise — and, in some cases,
their grandchildren (the “club sandwich” generation).
What does this changing demographic look like? Nearly three out of four are aged 40 to 59, generally more affluent, mostly married adults, and have at least a bachelor’s degree. And, according to a 2022 Pew Research Center study, they’re more “pressed for time” and more likely to be behind on meeting personal financial goals, such as saving for retirement or paying off credit card debt.
What impact does being a member of the sandwich generation have on personal financial security?
Less about age, more about stage
With the sandwich generation stacked toward the middle and upper-middle class, research shows that the challenges it faces are less about the age and more about the stage of care that’s needed. In general, Americans are living longer, with life expectancy for the total population projected to increase by about six years, from 79.7 in 2017 to 85.6 in 2060.
At the other end of the age spectrum, a significant societal realignment is taking place, with half of adults aged 18 to 29 living with one or more of their parents (up from 38% in 2000) and the number of caregivers of adults that also have grandchildren in the household increasing to about 30%.
Providing care simultaneously to an aging parent and young children is taking its toll, particularly if caregivers also manage full-time jobs. Pew Research reports that multigenerational caregivers spend about 67 minutes more a day than others on adult care, clock in less than 86 minutes a day on paid work than others who are not also providing adult care, and get 21 minutes a day less sleep than others who don’t have caregiving responsibilities. Plus, about 29% of “sandwiched adults” have provided at least some financial support to an adult child.
High stress levels impact financial security and emotional well-being
Sandwich-generation caregivers are pulled in many directions, as 60% of caregivers work a full-time job while juggling home care and providing financial and/or emotional support to older family members or their children. In fact, according to an AARP study, 40% say that juggling caregiving with paid work is their biggest challenge. And a high percentage report that caring for an aging parent at home can alter the family dynamic and affect relationships with spouses and children.
We also fully agree with AARP’s observation that career disruptions and breaks due to caregiving can lead to substantial economic risk and even long-term financial struggles for providers.
What can you do?
Caregivers rarely have time to care for themselves. The first important step to take is to secure your own health and financial and emotional needs. No doubt, it can be a challenge for even the most organized adult to release yourself from guilt that you’re not doing enough. But getting regular exercise, following a healthy diet and getting enough sleep goes a long way to finding balance.
Second, if possible, try to negotiate flextime into your work schedule. This will require communicating to an understanding boss and coworkers that you can be as productive and just as much of a team player while you attend to important family responsibilities.
Next, make sure you fully understand your parent’s financial picture. Can they pay for home care? Do they own life insurance that provides living benefits? Do they already own long-term care insurance? Do they have untapped retirement accounts that can pay for caregiving, either to you or a third party?
Be careful not to be a financial enabler. Don’t make life too comfortable for your full-grown children; able-bodied adult children who are living at home need to contribute something. Unless there are extenuating circumstances (such as an adult child’s medical disability, in which case there are available government resources and programs), you need to make sure your health insurance, retirement accounts, budgeting and debt are under control before helping them.
Manage your time. An aging parent and younger child usually don’t have equivalent needs for home care and financial emotional support at equal levels at the same time. Prioritize as best you can. Try not to become the sole caregiver for an aging parent. Engage other family members, friends and neighbors, if possible, and clearly communicate your needs and expectations to your support network.
Finally, make sure you include the possibility of caring for older and younger family members as a contingency in your financial plan — you don’t have to go it alone! Working with a qualified financial advisor who has lots of experience helping clients navigate the sandwich years can be a big advantage.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This article was originally published by Pioneer Press.
By Bruce Helmer and Peg Webb, Financial Advisors at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO AM 830 on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Securities offered through LPL Financial, member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.
