For many people, financial planning starts with a simple goal: provide for your family and retire comfortably one day.
What many don’t anticipate is that those two responsibilities may overlap.
Today, millions of Americans find themselves part of what has become known as the “Sandwich Generation.” These individuals are simultaneously helping aging parents while continuing to support children or young adult family members. As life expectancy increases and economic pressures continue to affect younger generations, more families are finding themselves pulled in multiple directions at once.
The challenge is not simply financial. It is emotional as well.
Many parents want to help their children succeed. They may contribute toward college expenses, assist with a first home purchase, help with childcare, or provide support during a difficult financial period. At the same time, aging parents may begin requiring assistance with healthcare decisions, transportation, housing, or daily living expenses.
Individually, these responsibilities may seem manageable. Together, they can create significant strain on a family’s finances and long-term goals.
One of the most common mistakes individuals make is prioritizing everyone else’s needs while neglecting their own retirement planning. While helping family members is often a worthwhile goal, it is important to remember that retirement generally cannot be financed through loans. Every dollar redirected away from retirement savings today may require additional years of work or reduced spending in retirement later.
Healthcare and long-term care costs are another area that often catches families by surprise. Americans are living longer than previous generations, which is generally positive news. However, longer life expectancies can also increase the likelihood that some form of care may be needed during later years.
At the same time, the cost of providing care continues to rise. Labor shortages within healthcare, increasing demand for services, and inflation have contributed to higher costs for assisted living facilities, nursing care, and in-home caregiving services. Many families discover these expenses only after a health event occurs, limiting the number of options available.
While every family’s situation is unique, planning ahead can create greater flexibility when important decisions need to be made. This may include reviewing retirement projections, evaluating insurance coverage, discussing estate planning documents, or simply having conversations with family members about expectations and responsibilities.
Open communication is often one of the most valuable planning tools available. Family members frequently avoid discussing financial matters because the conversations can feel uncomfortable. Yet clear communication may help reduce misunderstandings and improve decision-making when challenges arise.
Being part of the Sandwich Generation can feel overwhelming at times. The competing demands of children, parents, careers, and retirement often leave individuals feeling as though everyone depends on them.
While there is rarely a perfect solution, thoughtful planning can help families better understand their options and make informed decisions. By preparing before a crisis occurs, individuals may be better positioned to care for the people they love while still working toward their own long-term financial goals.
Seth J. Edgil and David Guttery offer products and services using the following business names: Keystone Financial Group– insurance and financial services | Ameritas Investment Company, LLC (AIC), Member FINRA/SIPC – securities and investments | Ameritas Advisory Services, LLC (AAS) – investment advisory services. AIC and AAS
are not affiliated with Keystone Financial Group. Information is gathered from sources believed to be reliable;
however, their accuracy cannot be guaranteed. Data provided is for informational purposes only and should not be construed as a recommendation to purchase or sell any investment product. The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.
