The Growing Concern of the Sandwich Generation
The Sandwich Generation, defined as individuals aged 40-59 who provide financial or caregiving support to both adult children and elderly relatives, are facing a unique challenge. A new survey by Athene has revealed that nearly three quarters (73%) of this demographic have adjusted their retirement goals to support their adult children or aging relatives.
Adjusting Retirement Goals
- 34% have delayed retirement
- 22% use retirement assets to support their family
- 9% plan to retire at all
These results highlight the growing concern of the Sandwich Generation, who are shouldering the responsibility of supporting multiple generations at once. This can lead to significant stress and financial strain, particularly in retirement.
Avoiding Retirement Crisis
“As the retirement age population in the U.S. grows, the Sandwich Generation represents the next wave in America’s retirement crisis, with potential long-term implications for individuals, families, and the economy,” said Mike Downing, Athene Chief Operating Officer.
However, the survey also found that many Sandwich Generation members lack a written retirement plan, with only 24% of respondents having one. This lack of planning can lead to a range of problems, including financial insecurity and reduced quality of life in retirement.
Guaranteed Income Can Provide Relief
Guaranteed income can be a valuable tool in managing the financial aspects of caregiving and planning for retirement. Respondents who had already incorporated guaranteed income into their financial strategies tended to have higher incomes, reported more confidence, and felt more prepared for retirement.
| Guaranteed Income Benefits | Respondents with guaranteed income |
| Higher income | 65% |
| More confidence | 68% |
| Greater preparedness for retirement | 70% |
The Impact of Caregiving on Women
Athene’s survey found that caregiving for adult children and elderly relatives affected women in the Sandwich Generation disproportionately. Women reported higher levels of financial strain than men, and were less likely to proactively plan their finances.
Women were also less likely to seek advice from a financial professional, discuss financial planning with elderly relatives, or have a written retirement plan. This can put them at a disadvantage when preparing for retirement.
Financial Professional Support
A trusted financial professional can provide valuable support in managing the financial aspects of caregiving and planning for retirement. An overwhelming majority (90%) of respondents already working with a financial professional reported a positive impact on their financial future.
Maintaining Standard of Living in Retirement
Respondents who are concerned about maintaining their standard of living in retirement were more likely to be worried about not having enough assets to retire. Those not currently working with a financial professional were more likely to be worried about not having enough assets.
However, those already working with a financial professional were more likely to feel confident in their ability to maintain their standard of living in retirement.
About Athene
Athene is the leading retirement services company, with over $360 billion of total assets. The company offers a range of retirement income and savings products, and also serves as a solutions provider to corporations.
Athene’s survey highlights the growing concern of the Sandwich Generation, who are facing unique challenges in supporting multiple generations at once.