Are You Putting Yourself Last? The Cost Could Be Your Retirement Security
If you're part of the sandwich generation, it's critical that you don't let the needs of your aging parents come at the expense of your future. Here's how to address the issue.
Caring for both your aging parents and young children is tough.
It can be an overwhelming drain on your time and your finances, and attending to their needs often means putting yourself last.
One in four Americans (25%) are part of the sandwich generation with a child under 18 and a living parent, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement*, part of Allianz Life Insurance Company of North America.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nearly half of Millennials (46%) and 18% of Gen Xers have dual responsibility for kids and parents.
While it's good to care for loved ones, it's important to not let their needs come at the expense of taking care of yourself. When it comes to your long-term finances, putting yourself last can have a costly effect down the road.
Costly effect of dual caregiving
While it might feel as if it's your responsibility to care for everyone, it's important to keep your best interests in mind for your long-term security.
What's worrisome is that the majority of Americans in the sandwich generation said it is affecting their finances. Three in four of them (75%) said it's hard to juggle their financial needs and goals because they're caring for children and parents.
In addition, 70% of Americans in the sandwich generation said taking care of their child(ren) and parent(s) simultaneously has had a significant impact on their retirement plans.
What's more, 59% said they've reduced or stopped contributing to retirement savings accounts due to having to financially support both their children and parents.
This is one of those airplane mask situations — secure your own oxygen mask before assisting others. You need to prioritize yourself to support anyone else. In particular, forgoing saving for retirement now can have costly consequences later.
The risk of neglecting retirement savings
Millennials and Gen Xers who are part of the sandwich generation might feel as if they have plenty of time to financially prepare for retirement. But waiting to put money aside for retirement comes at a great cost.
For example, consider the cost of lost compounding. Time is one of the most powerful tools for amassing retirement funds because of compounding. Delaying savings means giving up years of this exponential growth.
There are other benefits that can add up over time. You might lose out on the tax benefits of growing funds in tax-deferred accounts, such as a traditional 401(k), or tax-free accounts, such as a Roth IRA, or miss out on matching retirement funds from your employer.
Reducing or stopping retirement savings could compound the lost opportunity for growth if your employer matches contributions to a retirement savings account.
Maintaining retirement contribution levels to always receive the full employer match is a smart way to make all the money you're setting aside for retirement work harder for you.
Neglecting retirement savings poses a risk to your future lifestyle. Less money set aside for retirement could lead to a lower standard of living in retirement, working longer to make up for savings or more aggressive savings to catch up and stay on your desired retirement timeline.
You could also become a burden to your children — possibly creating another sandwich generation.
Make a plan now
If dual caregiving is part of your reality now, creating a financial strategy that accounts for that responsibility while maintaining your financial priorities is key.
When feeling squeezed financially, the first step is always to assess current spending to see if there are expenses to cut. Budgeting and reducing spending can help, but it often won't be sustainable for long-term needs.
You may also want to look into how your parents could use their existing assets. Your parents may have a life insurance or annuity policy that offers, potentially at an additional cost, long-term care benefits or other ways to potentially draw money from the policy to help them through financial stress.
A financial professional can help you design a strategy that balances your competing priorities to care for your kids and parents now without neglecting your financial future.
Balancing the demands of dual caregiving on your finances requires thoughtful planning because caring for both your kids and aging parents doesn't have to derail your long-term financial goals.
Prioritizing your own financial security will allow you to support your loved ones. The key is to develop a financial strategy that can ensure that you can care for your loved ones today and care for yourself tomorrow.
* Allianz Center for the Future of Retirement conducted an online survey, the 2025 Annual Retirement Study in January/February 2025 with a nationally representative sample of 1,000 Respondents age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+.
Related Content
- Four Financial Steps That Can Help the Sandwich Generation Cope
- How to Support Your Parents Without Derailing Your Finances
- Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
- Three Steps Help Ensure Your Money Lasts in Retirement
- Four Things Gen Xers Can Do Now to Reach Retirement Goals
-
Don't Overpay the IRS: 6 Tax Mistakes That Could Be Raising Your BillTax Tips Is your income tax bill bigger than expected? Here's how you should prepare for next year.
-
Flashback Finance: The Cost of Retiring the Year You Were BornJust like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
How One Hospital Visit Overseas Could Wreck Your FinancesProper planning can give you peace of mind and protection, regardless of what happens on your trips.
-
Flashback Finance: The Cost of Retiring the Year You Were Born
Just like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
It's Time to Rethink What 'Aging Well' MeansDon’t fall into the trap of thinking there is a "right way" to age. Here's how to reframe aging in a healthy, achievable way.
-
Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial PlannerThese practical resources and benefits can help military spouses with managing a budget, tax and retirement planning, as well as supporting their own career
-
3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial PlannerAs data breaches and cyberattacks increase, it's vital to maintain good data hygiene and reduce your personal information footprint. Find out how.
-
Here's Why You Can Afford to Ignore College Sticker PricesCollege tuition fees can seem prohibitive, but don't let advertised prices stop you from applying. Instead, focus on net costs after grants and scholarships.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
The New Average Divorce Rate By Age: Are You in the Risk Zone?While the overall divorce rate has seen a small but steady decline, gray divorces have been on the rise since the 1990s.
-
We Retired at 70 With $4.3 Million. My Wife Won't Spend 'Our Grandkids' Inheritance,' but I Want to Travel.I want to travel while we are still healthy, but my wife wants to pass down our wealth. Who is right?
