The 'sandwich generation' is strained: How to save for retirement while caring for kids and aging parents

maxim ibragimov // Shutterstock 50 hours. That’s the amount of time America’s “sandwich generation” spends caring for both children and aging parents every week, according to a New York Life Wealth survey. These caretakers of multigenerational households are struggling under the financial and emotional burden of their responsibilities–especially when it comes to saving for the future. Caring.com analyzed resources from the IRS, Family Caregiver Alliance, National Council on Aging, AARP, and other organizations supporting aging Americans to compile a list of ways to save money for retirement while caring for multiple generations under one roof. The “sandwich generation” is a term often used to describe Americans in their 40s and 50s caring for elderly parents and their own children. It’s not just time they’re dedicating to care, it’s also money. Amid higher-than-usual inflation, these Americans are experiencing cost overload during their peak earning years. Debt and difficulty saving are some of the top financial stressors they face. Of the sandwich generation caretakers who report having credit card debt, the average amount of debt is nearly twice that of the overall population, surveys suggest. Longer lifespans, as well as higher housing and health care costs, are reshaping the long-term care experience for all Americans, let alone those also juggling the cost of raising children. Even for those looking to nursing homes to help alleviate the stress, worker shortages in long-term care have pushed the costs to new highs. The typical $8,000 per month cost now required for a semiprivate room at a nursing home makes at-home care look far more appealing. But it isn’t free of costs, including emotional costs. Generally, setting aside 15% of monthly income for retirement from age 25 until 67 is recommended by investment experts. Saving that much may feel challenging with additional caregiving costs. “Millennials are finding themselves sandwiched between responsibilities like caring for aging parents and milestones in their own life journeys, like starting their own families, purchasing a home, and saving for retirement,” New York Life vice president Jeff Beligotti said in a statement. Intentionally cutting down on how much is spent on those added expenses can go a long way toward sustaining a retirement. And it begins, as so much else in financial planning does, by convening and communicating with every stakeholder. Can parents contribute to the cost of care?