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A growing share of Americans are caught in the squeeze of supporting both children and aging parents. According to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement, 1 in 4 Americans now belong to what they’ve termed the “sandwich generation.” The study highlights the significant financial and emotional pressures that dual caregiving responsibilities pose to an increasing number of middle-aged Americans.
Retirement savings take a hit
The study, which surveyed 1,000 Americans aged 25 and up, shows that the demands of caring for both children and parents are leaving many unable to prioritize their own financial futures. Further, 3 in 4 respondents (75%) said they struggled to balance their financial goals while supporting their families.
Even more concerning, 59% reported reducing or stopping retirement contributions entirely due to caregiving costs. Overall, 70% of the “sandwich generation” said these responsibilities had a significant impact on their retirement plans.
Daily life feels like a full-time job
Beyond the financial challenges, the day-to-day work of caregiving is weighing heavily. The study found that 76% of participants said caring for both parents and children is “almost like a full-time job.” For many, this burden was unexpected: 60% of respondents caring for both their children and parents admitted they were not planning or expecting to provide support to their parents at this stage in life.
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Experts advise strategic planning
Kelly LaVigne, VP of consumer insights at Allianz Life, cautioned against neglecting long-term needs. “While you may feel it is your responsibility to care for everyone, it’s important to keep your own best interest in mind for your long-term security. Forgoing your own retirement savings now can have costly consequences later on,” LaVinge said
LaVigne further suggests that people struggling to balance multi-generational caregiving with financial planning consider consulting with a professional, saying “A financial professional can help you create a strategy to balance current responsibilities with your financial future. They may be able to suggest additional risk management strategies to incorporate into your financial plan to help ensure that your money lasts your lifetime.”
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