How to protect the sandwich generation

For many families, navigating both childcare and elder care has become a part of everyday life.

Welcome to the sandwich generation: a term for adults who are simultaneously supporting both their parents and children, typically during their most crucial career and financial planning years.

In this article, we’ll report on the sandwich generation, why "sandwich caregiving" is on the rise, and how to balance the practical, emotional, and financial realities that come with it. You’ll discover practical strategies to help you and your clients safeguard their households today—and plan confidently for the future.
 

What is the sandwich generation?

In simple terms, the sandwich generation consists of adults who support ageing parents while also raising children (or assisting grown children who aren’t fully financially independent.)

Coined by social worker Dorothy A. Miller in the 1980s, the “sandwich generation” refers to a modern caregiving reality shaped by:¹

• Longer lifespans
• Shifting work patterns
• Economic pressures delaying when grown children "leave the nest"

Most commonly, the sandwich generation includes adults in their late 30s to mid-60s, with many identifying as Gen X and older Millennials.

Culture, geography and household structure influence how families provide support. Some embrace multi-generational living as a long-term plan, while others use it as a short-term strategy driven by health or financial needs. Women still perform a large share of sandwich caregiving, though men share these responsibilities more and more. 

Here's why we're talking about it: Across all income levels, the financial impact can be significant.  This is especially true when elder care costs overlap with education expenses, mortgage payments and retirement planning.
 

Jackson’s sandwich generation report sheds light on these challenges

We surveyed 1,000 individuals who: 

• Are between the ages of 40–60 
• Have at least $10,000 in investable assets
• Have children or a living parent over age 65
• Make household financial decisions

What we found was concerning: Sandwich-generation households are more likely to withdraw from retirement savings to fund caregiving.² With parental-care costs to cover, unfortunately, many people find themselves using a mix of savings and loans to cover the costs of caring for their parents and just to make ends meet.

And of course, the strain goes beyond finances. Family dynamics, emotions, and stress can become overwhelming for the sandwich generation. Taking care of elderly parents requires a lot of time during an already-busy season of life. Sandwich generation caregivers coordinate medical appointments, school schedules and work obligations while making decisions that range from health directives for parents to education choices for children. 

If you're part of the sandwich generation, you know the challenges all too well. You may have clients who do, too. It’s important to address caregiving needs without losing sight of long-term goals. Practical planning—like budgeting, saving and long-term care strategies—can help protect everyone. 
 

Multi-generational living: Benefits and boundaries

Shared homes can make caregiving more manageable. Grandparents may help with childcare; adult children can play chauffer, tech support and household maintenance. These efficiencies can free up resources and help make a solid retirement possible for the sandwich generation. 

But there are trade-offs. Let's take a look at the pros and cons:

Pros:

• Reduces costs
• Consolidates care
• Streamlines daily routines
• Strengthens family bonds
• Creates opportunity for new, life-long memories

Cons: 

• Complicates scheduling 
• Adds more noise
• Raises potential for conflict
• Complicates parenting decisions and roles
• Creates new expectations around care

Caregivers in the sandwich generation are at risk of burnout, but a clear household plan—covering budgets, roles, chores and medical coordination—helps reduce strain. 
 

Creating a practical plan for your household

Here are some key points to address in your household plan before bringing the family all under one roof:

1. Clear roles

Whether multi-generational living is a cultural default or a temporary solution, clarity is essential. It can be helpful for families to document each person's roles and responsibilities as if the household were being managed like a business. This might include clarifying who a parent should consult before scheduling medical appointments, how much influence grandparents have over decisions involving the children, what arrangements are needed when someone must travel and the level of privacy each person can expect. These agreements should be revisited regularly as family needs evolve.

2. Financial boundaries

Conversations around money can make people uncomfortable, especially with family members. But that's why it's crucial to be clear and transparent upfront. So, make sure everyone knows how things will be handled financially. Who pays for rent or the mortgage, and how much? How will the shared expenses, bills, or even groceries be handled? Will some family members need special accommodations or upgrades in the home, like bathroom grab bars or a wheelchair ramp?

3. Family calendar

Caregiving across generations requires focus and structure. On a shared calendar, start by mapping weekly priorities—medical appointments, school commitments, work deadlines, meals—and group similar tasks to reduce transitions. Create reminders to coordinate transportation, medication checks and recurring errands. Consider time-blocking for unexpected needs and paperwork. Delegate where possible: assign age-appropriate chores to children and involve siblings or trusted friends.

4. Self care 

Caring for ageing parents can seem like an act of love, but that love needs fuel. Arranging time for some self-care habits and making space for joy and rest is essential. This is a necessary part of the overall care equation--not separate from it.

A household plan will likely include more considerations than these, and everyone in the family should speak into it. We suggest actually creating a document of some sort for clarity. 
 

How financial professionals can help the sandwich generation

As your clients balance everything from college planning to elder care, you can help them set priorities and spending thresholds to avoid eroding their retirement savings.

Out-of-pocket costs can add up quickly—from medical co-pays and transportation to home modifications and respite services. These expenses can reduce retirement contributions, increase credit card debt and delay major goals like paying down a mortgage or funding education. 

Professional life is notably affected as well. Those in the “sandwiched” group tend to take more time away from work and report a greater number of missed career opportunities than their peers.³ This may affect retirement contributions and employer matching. 

But caretakers view their role as net-positive. As we discovered in our report, the greater responsibilities correlated with greater satisfaction in life.⁴

These insights can help financial professionals empathetically tailor guidance to address pressure points, like:

• Irregular or strained cash flow
• Rising healthcare costs
• Extended support for adult children

Families in the sandwich generation may need specialized advice on budgeting, creating contingency reserves and evaluating tax-aware income strategies that reduce near-term stress.

Look for support through federal and state benefits, tax credits and employer programs such as flexible spending accounts, caregiver leave and care navigation. For long-term planning, Jackson is here to provide education on annuities, financial planning strategies and tax-aware approaches designed to help protect savings. 
 

Is sandwich caregiving the new normal?

As longevity increases and adult children transition more gradually into financial independence, the sandwich generation is likely to grow. Caregivers may experience frequent role shifts—supporting parents through episodic health events while assisting children with education costs and early career stability. We might see these employees prioritizing flexible work, integrated care coordination and holistic financial planning that addresses immediate needs alongside retirement security.

As these dynamics evolve, financial professionals are in a unique position to help clients craft durable plans tailored to multi-generational caregiving needs. 
 

Next steps for sandwich caregivers 

Whether you're here for your clients or your own family situation, here are some immediate action steps:

1. Begin with cash-flow clarity—document monthly inflows, fixed and variable expenses and caregiving outlays.
2. Build an emergency fund sized to the household’s vulnerabilities (typically three to six months), including care-related contingencies.
3. Review insurance coverage for likely scenarios and assess long-term care options alongside estate planning to clarify roles, directives and beneficiaries.
4. Create a household plan for multi-generational living, if applicable. 

As a financial professional, be sure to integrate time horizons, risk tolerance and liquidity needs to avoid excessive drawdowns during caregiving peaks. Consider vehicles that can help provide predictable income and tax-aware distributions and coordinate debt reduction to minimize interest costs.

For guidance on building durable, tax-aware retirement income plans—and aligning them with the realities of the sandwich generation—Jackson is here for you with clarity and confidence. It is possible for caregivers to sustain support without sacrificing their future.