Americans balancing the costs and time of caring for both children and aging parents are finding it increasingly difficult to save for retirement.
According to a newly released study from the Allianz Center for the Future of Retirement, three in four members of the “sandwich generation”—75 percent—said it was hard for them to juggle their financial needs and goals because they were caring for their children and parents.
The study defines the sandwich generation as adults who have at least one child under 18 and a living parent—which is around one in four Americans.
In its survey of 1,000 Americans aged over 25, more than half—59 percent—of this group said they had reduced or stopped contributing to their retirement savings accounts in order to support both generation. Seven in 10 said taking care of both their children and parents simultaneously had a significant impact on their retirement plans. Seventy-six percent described providing multiple lines of care as almost like a full-time job.
The burden is concentrated among younger adults: 46 percent of millennials and 18 percent of Gen Xers meet the sandwich generation criteria. A large majority (78 percent) are providing their parents with physical, financial or emotional support, and for many this responsibility was unanticipated—60 percent said they were not expecting or planning to give support to their parents at this time.
“Caring for both your young children and your aging parents can be overwhelming for both your time and your finances,” says Kelly LaVigne, VP of consumer insights, Allianz Life.
“While you may feel it is your responsibility to care for everyone, it’s important to keep your own best interest in mind for your long-term security. Forgoing your own retirement savings now can have costly consequences later on.”
“You won’t be able to care for others if you neglect yourself,” LaVigne continued. “If you’re struggling to manage all your priorities, a financial professional can help you create a strategy to balance current responsibilities with your financial future.
“They may be able to suggest additional risk-management strategies to incorporate into your financial plan to help ensure that your money lasts your lifetime.”
The State of Retirement in the U.S.
It’s no secret that saving for a comfortable retirement in America has become more difficult over the years—and people are feeling the pressure.
In 2025, confidence in meeting retirement goals is declining among Americans. In 2025, only 34 percent of 401(k) participants feel “very likely” to achieve their retirement savings targets, down from 43 percent the previous year, according to wealth management firm Charles Schwab.
Meanwhile, expectations for a comfortable retirement have shifted downward, according to research by Northwestern Mutual. Americans now think they need a hefty $1.26 million in savings for a comfortable retirement, a decrease from $1.46 million in 2024. However, the study revealed that 25 percent of Americans have saved just one year or less of their current annual income for retirement, and over half fear they will outlive their savings.
Read the full article here
