I recently had dinner with a friend who shared her financial struggles with me. At first, it seemed surprising – she has a well-paying job, and her spouse is equally successful in their career. But as the conversation unfolded, she revealed that she is financially stretched in two directions.

As an only child to ageing parents struggling financially, she feels obligated to support them. At the same time, she’s still financially responsible for her two children – one in high school and the other just starting university.

What’s striking is that this is not the first time I’ve heard such a story from a friend. The reality is that more and more people are facing similar challenges. Those hit hardest are often part of the “Sandwich Generation” – a group caught in the middle, balancing the financial needs of their children while also navigating their own personal finances and taking on the responsibility of supporting their elderly parents.

Who is included in the Sandwich Generation? Demographically, individuals aged 40 to 60 who are often juggling full-time careers while managing the financial needs of their families, spanning multiple generations (Kelly, 2023).

The situation faced by the Sandwich Generation is not entirely unique, but over the past 30 years, it has become far more common than in previous generations. This shift can be directly linked to several factors, including:

• Couples starting families at an older age

• Increasing life expectancy

• Limited resources and facilities for elder care

• Inflation outpacing income growth

These factors have led to myriad financial challenges, placing significant strain on the Sandwich Generation’s budgets, savings, and overall economic stability.

What is often overlooked, however, is that this situation also erodes their ability to plan for their own future, as their focus is primarily on others. This dual responsibility can lead to considerable financial, emotional, and physical stress.

Below are five major strains faced by the Sandwich Generation:

Financial pressure

Caregiving for ageing parents can be costly, with expenses ranging from medical bills to home modifications for elderly care. Caregivers often find themselves spending tens of thousands of dollars annually on out-of-pocket costs for their parents’ needs. At the same time, they may also be saving for, or paying for, their children’s education. This dual financial responsibility can lead to significant worry as caregivers struggle to balance budgets, save for the future, and sometimes even cope with reduced incomes if they need to cut back on work hours or leave their jobs entirely to provide care.

Time constraints

Time management is another significant strain for the Sandwich Generation. With the demands of caring for children – managing school schedules, extracurricular activities, and social engagements – while also assisting ageing parents with appointments, medication management, and daily care tasks, caregivers often find themselves with little to no personal time. This can lead to feeling overwhelmed and a constant sense of urgency. The struggle to juggle multiple schedules can result in chronic stress and may even affect job performance, leading to decreased productivity or burnout in their professional lives.

Emotional stress

The emotional toll on those in the Sandwich Generation can be profound. Caring for ageing parents often brings feelings of guilt, especially if caregivers feel they are not doing enough or cannot meet their parents’ needs adequately. At the same time, they may also face challenges related to their children’s developmental needs, including education, emotional health, and socialisation. The constant worry about both generations can create a heavy emotional burden. Additionally, emotional stress may give way to frustration and resentment between spouses if one side of the family requires financial support while the other does not.

Health risks

Stress takes a toll on the body – there’s no denying that. The relentless pressure placed on Sandwich Generation caregivers can severely affect their physical health. Chronic stress is linked to various health issues, including anxiety, depression, and heart disease. Caregivers often neglect their own health needs, forgoing regular check-ups or mental health support in favour of their family responsibilities. Lack of sleep, poor diet, and limited exercise can further deteriorate their physical wellbeing. Many caregivers report feeling overwhelmed, leading to mental and physical exhaustion, often referred to as caregiver burnout.

Strained intrafamily relationships

It is important to recognise that the Sandwich Generation often faces strains in their personal relationships, especially when siblings do not share caregiving responsibilities and duties equally.

With all that said, the question must be asked: given all the challenges faced by the Sandwich Generation, how do you navigate them?

Here are some strategies to consider:

• Establish boundaries: learn to set clear boundaries between what you can do, what you’re prepared to do, and what you will not do. This will help prevent burnout and allow time for self-care.

• Prioritise communication: open, honest conversations with your parents and children are essential. Discuss needs, expectations, and feelings to foster understanding and co-operation among family members.

• Plan finances: financial strain can be a significant source of stress. Create a budget that accounts for caregiving costs while ensuring you set aside funds for your family’s needs and your own future.

• Embrace flexibility: the balancing act often requires adaptability. Be prepared to reassess and adjust plans as circumstances change, whether due to health issues or shifts in family dynamics.

At the end of the day, identifying potential warning signs that you might be required to provide extended help to your family will be key to successfully navigating through it.

References

Kelly, J. (2023): “The ‘Sandwich Generation’ Is Financially Taking Care of Their Parents, Kids and Themselves”, Forbes. Available from: https://www.forbes.com/sites/jackkelly/2023/02/24/the-sandwich-generation-is-financially-taking-care-of-their-parents-kids-and-themselves/ [Accessed 15 December 2024].

• Carla Seely has 24 years of experience in the international financial services, wealth management and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI certification through the Chartered Institute for Securities and Investments (UK), the QAFP designation through FP Canada, and the AINS designation through The Institutes. She also holds a master’s degree in business and management