The Sandwich Generation Is Running Out of Time and Money According to This Allianz Study

"59% of members of the sandwich generation have reduced or stopped contributing to retirement savings to care for children and aging parents simultaneously. This is the real headline figure, as caregiving is emotionally taxing and a line item that is quietly draining the retirement accounts of working-age Americans in their 40s and 50s."

"The Allianz survey, based on 1,000 nationally representative respondents fielded in January and February 2025, defines the group narrowly. These are people with at least one child under 18 and at least one living parent or parent-in-law. Within that group, 78% are providing financial, emotional, or physical support to their parents."

"The retirement damage is already done. The Allianz numbers describe a slow-motion shortfall, with 70% of sandwich generation respondents saying the dual responsibility has significantly impacted their retirement plans, and 65% worry they will not have enough money to retire because of it. The more striking figure sits underneath: 40% say caregiving has derailed their retirement strategy entirely."

"The broader stress shows up in how people describe their finances: 75% of members of the sandwich generation say they struggle to balance all their financial needs and goals. That is three out of four households telling a researcher, on the record, that the math no longer works."

59% of sandwich generation members reduced or stopped contributing to retirement savings to care for children and aging parents at the same time. Caregiving creates financial strain through reduced work time, emotional stress, and budget pressure that lowers retirement account contributions. Within this group, 78% provide financial, emotional, or physical support to parents. 70% report that dual responsibilities significantly impacted retirement plans, and 65% worry they will not have enough money to retire. 40% say caregiving derailed their retirement strategy entirely, leaving them behind by more than a year or two. 75% struggle to balance financial needs and goals.

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