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Serving the sandwich generation

Meet the sandwich generation

A rising population of clients managing parents, children and themselves.

These individuals are juggling the pressure of securing their own futures alongside the needs, time commitments and financial strains of three generations.¹

The latest research shows this group is growing and so is what's demanded of them. They're navigating complex financial and emotional challenges, adding stress and anxiety. They're also facing longer caregiving timelines, driven by increased life expectancy, and some are using personal savings to help cover family costs.²

The sandwich generation, especially those who feel the financial strain deepest, are often underserved. They look to financial professionals for assistance—and relevant, concrete guidance can make all the difference. Many say they feel a renewed sense of confidence after working with professionals.² That means taking the time to understand them isn't just good client service, it's a smart move for your long-term business.²

Nearly 1 in 4

Americans are sandwiched between caring for aging parents while raising or financially supporting their own children.¹

1/3

Who is the sandwich generation?

This generation comprises adults ages 40 to 59 who simultaneously have an aging parent and are either raising at least one child younger than 18 or providing financial support to an adult child.¹

All racial and ethnic backgrounds are equally likely to be part of the sandwich generation, as are men and women.

About

60 million

Americans fall into this group.¹

2/3

What pain points does this generation face?

In a recent survey many in the sandwich generation said stress and anxiety are constant pressures during this stage of life.²

However, partnering with a financial professional proved to have a positive impact. The survey saw a reduction in the number of individuals who feel those same challenges.

Professional guidance makes a difference. Without it, pain points hit harder.

Not working with financial professional
Working with financial professional

Stress and anxiety
60% vs. 48%²

Financial strain
54% vs. 38%²

Limited personal time
43% vs. 40%²

Juggling multiple responsibilities
52% vs. 41%²

3/3

How do money and emotions play a role?

The sandwich generation experiences both financial and emotional impacts in different ways.

Financial responsibilities may force some to cut into personal expenses, dip into their retirement funds or even delay their retirement plans.

This stage can bring significant emotional impacts, demanding time and energy sacrifices. Between supporting aging parents and either raising children or helping adult children, there's little time left for themselves.

It's also important to find balance and prioritize their financial needs, especially as they age.

73%

Say their retirement savings have been impacted due to family financial responsibilities.²

47%

Say they lose sleep due to the financial strain.²

Clients in the sandwich generation are often pulled in multiple directions.

They are balancing financial and emotional responsibilities.

Everyday expenses like food, housing and health care compete with personal expenses or retirement savings. This is exactly where financial professionals can step in: guiding clients through these financial complexities, helping them navigate the emotional impact and supporting them in finding purpose in caregiving.

Caring can be costly to the bottom line

Let's face it, this stage of life can make finances a complicated subject. Supporting multiple family members, covering their own expenses and working out how to share responsibilities with siblings or a spouse adds layers of complexity many may not be prepared for.

Understanding the financial complexity

Did you know?
For those in the sandwich generation, food and rent are the most common expenses when providing financial support to family.² There's a bigger financial toll when caring for both children and aging parents.

24%
of sandwich generation caregivers report financial difficulty, compared with just 12% of those caring only for an older parent.

They're carrying a lot on their shoulders. Providing meaningful guidance now can help them balance priorities and plan for the future.

Children and the "boomerang effect"

Adult children are returning home or relying on parents for expenses

61% of parents in a recent survey say they have sacrificed financially to provide monetary support to their kids who are 18+.⁴

27% of adults 23 or older receive (or received) financial assistance from parents.⁴

49% of them received financial help with housing—the largest expense.⁴

43% of these parents sacrifice emergency savings, while 37% are sacrificing retirement savings.⁴

64% of parents cover the cost of their adult children's cell phone.²

Taking care of aging relatives

Supporting daily needs, insurance or adult day care and senior care

These expenses can become more complex and pricier every year. With longer life expectancy, individuals are caring for family longer, paying more as costs rise, and losing out on their own needs. Most Americans prefer aging at home.⁵ And while home care can be less expensive than other options, it still can deplete savings for many in retirement.

When these responsibilities on both sides of the generational divide layer on to personal needs, it naturally creates financial strain. And the work gets harder as people age, adding to stress levels.

About 25%
of those 65+ will likely require significant financial support for more than three years.⁵

More than 3/4
expect to continue care for aging family for extended time or as long as needed.²

It's more than just a chore, it's emotional

Caring for others, especially aging relatives, is often seen as both a responsibility and a moral obligation. While it often provides a sense of purpose, it can increase stress and anxiety.

Households earning under $100K are more likely than higher-income households to report emotional impacts

Income under $100K

Income over $100K

59%

51%

Stress and anxiety is a top challenge²

42%

35%

Feeling overwhelmed due to multiple caregiving roles²

The balancing act also places a personal burden.

Two in five say they struggle with limited personal time and feel stretched thin.²

There is a clear gender disparity in caregiving responsibilities

Women take on a disproportionately higher burden compared to men, both financially and emotionally.

We see women take on more daily responsibilities for both aging parents and children. And the challenges many experience disproportionately impact women.

Men in the sandwich generation, meanwhile, report experiencing more tension in their relationships.

Women are more likely to juggle multiple responsibilities²

52%

Women

43%

Men

Women are less likely than men to seek financial advice²

36%

Women

57%

Men

Men are more likely than women to report strains with extended family²

55%

Men

46%

Women

Caregiving responsibilities affect both finances and relationships. For financial professionals, understanding these pressures and how they impact individual clients can help better frame conversations with empathy, anticipate concerns and provide strategies that support a family as a whole.

Retirement and savings can take a back seat

These individuals have a desire to focus on their own retirement and savings, especially during their top earning years. But these responsibilities can make it difficult to put a plan in place. And without a financial plan they may feel a loss of confidence and more stress.

38% worry about declining health, long-term care or outliving their money.²

34% are delaying retirement to continue supporting family.²

22% are using retirement assets to support family.²

Proactive financial planning can significantly mitigate the overwhelming stress this generation experiences. What's more, it may even allow them to put more focus on the rewarding side of caregiving.

There is a silver lining

This life stage is packed with nuance. Despite the stresses, many people manage to see past the work, planning and daily tasks and into the positives they find in caring for loved ones.

Finding purpose in the process

50% of adults living in a multigenerational household report finding it rewarding.⁶

Over 50% feel completely or fairly confident in their ability to provide financial support to their adult children and elderly family members.²

There's a role for financial professionals

The sandwich generation is a growing population. Financial professionals have a big role to play by offering advice on how to utilize and increase savings and so much more.

Helping clients find success in this stage may include enhanced planning meetings, strategies to boost income and sharing education on their options. There are simple ways to make a big impact with sandwich generation clients.

How financial professionals can change the game

Start conversations by considering their unique challenges, attitudes, and unique financial circumstances.

It's important to proactively start conversations in order to understand clients who are nearing or already in this life stage. This is a chance to step in and lead that preparedness for them. Even helping with financial literacy and building relationships with extended family or children can greatly impact the relationship and help ease pressures for clients.²

The sandwich generation is ready for the next step

~1/2 feel confident they have the ability to support family members.²

~1/3 feel they would be better prepared if they sought out advice.²

Here are some meaningful ways you can help clients immediately and effectively

Help them focus on financial goals and retirement savings.

Facilitate family conversations on estate planning, elder care and college planning.

Discuss tough topics like health care planning or selling a family home.

Walk through strategies around retirement income planning, tax considerations, & exploring alternative financial approaches.

Review government, employer and community support programs.

Offer guidance on long-term care planning and costs.

Explore more ways to set clients up for success

Diversifying income and looking into benefits that may include adding an annuity or other alternatives can provide more options for clients as they plan their financial future.

Individuals who have incorporated an annuity into their financial strategy demonstrate higher levels of confidence, reduced stress and are more prepared for retirement.² This preparedness can have a lasting impact on their finances and empower them to make more decisions with clarity and peace of mind.

Financial professionals have a real opportunity to step in for clients who are facing more complex responsibilities. They may have questions on navigating the health care system for an aging parent, making the most of tax strategies or simply looking for support as they explore new paths to retirement readiness. They very likely have both a long to-do list and many questions. They are looking for trusted advice to secure the answers and lean on more generally.

Learn more about the sandwich generation

When you position yourself as a trusted resource, you help sandwich generation clients manage their current responsibilities without compromising their financial futures. The better you understand their unique pressures, the better prepared you'll be to guide them well into their own retirement.

Read about the role of financial professionals for this growing population.

Sandwich generation toolkit

Insights on Athene Connect. Tips, tools and resources to grow your business by helping clients retire with confidence.

¹ Pew Research, 2022, "More than half of Americans in their 40s are 'sandwiched."
² The Harris Poll, 2025, "Is the sandwich generation ready for retirement?"
³ Journal of The American Geriatric Society, 2022, "A national profile of sandwich generation."
⁴ Bankrate, 2024, "Survey: 61% of parents of adult children have sacrificed to help them financially."
⁵ Yahoo Finance, 2024, "The cost of aging in place can be crushing."
⁶ Pew Research, 2022, "Financial Issues Top the List of Reasons U.S. Adults Live in Multigenerational Homes"

Athene does not provide tax, financial or legal advice. Taxpayers should consult their own independent qualified professionals as to their personal circumstances.

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