The Hidden Crisis: Sandwich Generation Retirement Planning and How to Avoid Financial Burnout
If you’re stuck between caring for aging parents and supporting your children, you’re not alone. More than 1 in 4 American adults are now part of the Sandwich Generation—and many are watching their retirement plans slip further out of reach.
This article explains the growing financial pressure facing Sandwich Generation families and offers practical strategies that can help you protect your future without abandoning those you love.
Why Sandwich Generation Retirement Planning Matters
The Sandwich Generation includes adults—typically between 40 and 59—who are simultaneously supporting elderly parents and children, often financially and emotionally. This pressure isn’t just stressful; it’s eroding retirement readiness for millions of families.
The Data: A Retirement Crisis in the Making
According to a 2025 Harris Poll commissioned by Athene, Sandwich Generation caregivers report:
73% say caregiving has negatively impacted their retirement
44% are cutting personal expenses to support family
34% plan to delay retirement
22% are withdrawing from retirement savings
9% believe they may never be able to retire
These numbers paint a clear picture: without a plan, many caregivers are putting their own futures at risk.
Why This Generation Faces Unique Challenges
Unlike previous generations, today’s caregivers must navigate:
The loss of pensions (replaced by 401(k) plans and IRAs)
Skyrocketing tuition and student loan debt
Inflation and volatile markets
Rising long-term care costs for aging parents
Fewer stay-at-home caregivers, forcing dual-income households
To make matters harder, many are also supporting “boomerang kids”—adult children who’ve moved back home. According to Athene’s research:
In 2023, 58% of caregivers had an adult child living at home
In 2025, that number jumped to 69%
96% financially support their adult children
79% are managing part or all of their children’s debt
Without boundaries or a long-term strategy, it’s easy to see how retirement plans get derailed.
The Emotional Toll of Caregiving
In my work with families across the country, I’ve seen the emotional wear and tear that comes from constantly giving to others. In fact, stress and anxiety ranked as the top emotional pain point in Athene’s national study.
But here’s some good news: 90% of Sandwich Generation caregivers say that working with a trusted professional improved their peace of mind.
Even if you’re feeling overwhelmed right now, there are strategies available to ease the burden—and protect your financial future.
Three Types of Sandwich Generation Caregivers
Understanding where you fit can help guide your next steps:
1. Proactive Planners
You’ve identified the risks and want guidance now. You’re open to strategies that protect your assets and secure your future.
2. Unaware or Underinformed
You may not fully recognize how much caregiving is affecting your finances. You need education, not pressure.
3. Overwhelmed or Avoidant
You see the problem but feel paralyzed or unsure what to do. You need clarity and confidence to take action.
No matter where you fall, starting the conversation is key. I often use “TED” questions—Tell me more… Explain… Define…—to uncover what truly matters to each client:
“Tell me more about what you’re doing for your parents right now.”
“Explain how helping your adult children is impacting your savings.”
“Define what peace of mind looks like to you in retirement.”
Female Caregivers: Carrying a Heavier Load
Women make up 60% of Sandwich Generation caregivers, but they are:
Less likely to seek help
Less likely to have a written strategy
More likely to handle the burden alone
Whether due to cultural expectations or personal reluctance, this group often suffers in silence. If that’s you—or someone you care about—know that support exists, and it’s okay to ask for it.
Overlooked Tools and Resources for Caregivers
Caregivers are often so busy helping others, they don’t know where to turn for themselves. Here are some free, reputable resources worth exploring:
Medicare.gov – Coverage and care options for aging parents
ElderCare Locator – Find local support services
Alzheimers.gov – Help for dementia-related care
National Institute on Aging – Guidance on caregiving and self-care
Local senior centers, churches, AARP, and Meals on Wheels
By making use of these tools, families can reduce costs and avoid burnout. When appropriate, I help clients explore protection strategies that offer guaranteed income streams, tax-advantaged growth potential, and benefits that can be accessed during their lifetime if care needs arise—all without relying on volatile markets.
Protection Strategies Worth Considering
For Sandwich Generation families, certain insurance-based financial tools can provide stability during uncertain times:
Income Protection Features
Guaranteed minimum income regardless of market performance
Inflation protection options to help maintain purchasing power
Flexible withdrawal provisions for unexpected family expenses
Tax Advantages
Tax-deferred growth that compounds over time
Potential tax-free access to income when structured properly
No contribution limits, unlike traditional retirement accounts
Living Benefits
Accelerated benefit options if long-term care becomes necessary
Chronic illness coverage for help with everyday living expenses
Return-of-premium features that safeguard family contributions
These features can be especially valuable for caregivers who need both growth potential and protection from downside risk.
Action Steps: How to Protect Yourself While Supporting Others
Here’s a focused list to help Sandwich Generation caregivers begin reclaiming control.
📌 Checklist for Retirement Planning as a Caregiver
List your caregiving-related expenses (now and anticipated)
Review your current protection and income strategies
Set financial boundaries with adult children—create written agreements
Avoid withdrawing from retirement accounts prematurely
Explore solutions with guaranteed income and living benefit features
Start an emergency fund if you don’t already have one
Schedule quarterly family finance meetings
Tap into free or low-cost community caregiver support
Speak with someone who specializes in multigenerational retirement protection
Conclusion: You Deserve to Retire Without Regret
Being a caregiver is noble—but without a plan, it can come at a steep cost. You don’t have to sacrifice your financial future to be there for your family.
With the right protection strategies, access to overlooked resources, and a clear game plan, you can support those you love and build the retirement you’ve earned.
I've helped families in situations just like yours find clarity and peace of mind—without sacrificing their future. If you’re ready to explore your options, start with a conversation.
