URGENT UPDATE: A groundbreaking study reveals that a staggering 75% of Americans in the “sandwich generation” are finding it increasingly difficult to save for retirement. This urgent issue affects millions of families as they juggle the financial burdens of supporting both children and aging parents.
According to the latest data from the Allianz Center for the Future of Retirement, released today, this demographic—defined as adults with at least one child under 18 and a living parent—represents about one in four Americans. The study, which surveyed 1,000 Americans over the age of 25, found that more than half (59%) have reduced or halted contributions to their retirement savings to manage these dual responsibilities.
The stress is palpable, with 70% of respondents indicating that caring for both their children and parents significantly impacts their retirement plans. Many express that this responsibility feels like a full-time job, with 76% of participants agreeing. The burden is particularly heavy on younger adults, with 46% of millennials and 18% of Gen Xers fitting the sandwich generation criteria.
“Caring for both your young children and your aging parents can be overwhelming for both your time and your finances,” said Kelly LaVigne, VP of consumer insights at Allianz Life. “It’s critical to consider your own long-term security while feeling the responsibility to care for everyone.”
Shockingly, 78% of those surveyed reported providing physical, financial, or emotional support to their parents, with 60% stating that they were unprepared for this role. The implications extend beyond individual families; they underline a growing trend that could have lasting effects on the U.S. economy.
Amid declining retirement confidence, only 34% of 401(k) participants feel “very likely” to meet their savings goals in 2025, down from 43% the previous year. This shift aligns with new expectations for retirement, with Americans now believing they need $1.26 million in savings—down from $1.46 million in 2024.
The situation has reached a critical point, as 25% of Americans have saved less than one year of their current annual income for retirement, and more than half fear they will outlive their savings. LaVigne emphasizes that neglecting personal retirement savings now can lead to dire consequences later.
“If you’re struggling to manage all your priorities, a financial professional can assist you in balancing your responsibilities with your future financial needs,” LaVigne added.
As the sandwich generation continues to face these daunting challenges, the need for awareness and support has never been more pressing. Families are urged to seek financial guidance to navigate this complex landscape, ensuring that the next generation can secure their financial futures.
This developing story highlights the urgent need for solutions as Americans confront a reality that demands both immediate action and long-term planning.