Strategies for the sandwich generation to ensure a more secure retirement

The results from the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement are hardly surprising when it comes to key findings about the sandwich generation — adults who are taking care of both children and aging parents.

The sandwich generation is squeezed. The Allianz survey reported 75% of sandwich generation respondents said it is hard for them to juggle their financial needs and goals while caring for children and parents. Another 59% said they have reduced or stopped contributing to their retirement savings account because of the demands from supporting both children and parents. And 76% said providing care for everyone is almost like a full-time job.

There are no magic personal finance solutions available to the sandwich generation. However, there are small, incremental steps that can help maintain a financial foundation to build on later.

For instance, automate your money strategies and obligations as much as practical. Make family expectations and mutual responsibilities explicit. And take full advantage of any employer and government benefits available to you.

Parents reach an emotional milestone when their children graduate or launch their own careers. Becoming an “empty nester” also opens the prospect for restoring career and financial health. The same holds when aging parents die. The loss is painful, but the end of caregiving responsibilities frees up time and money.

Adults after the “sandwich” stage of life have more breathing room with their budget. The drop in expenses and more time allows them to pay attention to their careers and to accelerate savings, especially for retirement. Plan for this next life stage while caregiving.

One possible move for the post-sandwich generation years is to boost contributions to retirement accounts (assuming the numbers add up; not everyone has the resources). People age 50 and older can make “catch-up” contributions to 401(k)s, 403(b)s and IRAs, letting you put away thousands more each year in tax-advantaged savings.

The post-sandwich generation can improve their financial security by redirecting freed-up cash into retirement accounts, debt reduction and other savings, while spending more time on their careers. The combination raises the odds of a more secure retirement.