Millennials and Gen Xers Struggling With Financial Effect of Caring for Both Children and Parents

KEY FINDINGS AMONG THE SANDWICH GENERATION:

• 75% say it is hard for them to juggle their financial needs and goals because they are caring for their children and parents
• 59% say they reduced or stopped contributing to their retirement savings account due to having to financially support both their children and parents
• 76% say providing care for everyone is almost like a full-time job

Americans who have both young children and aging parents are struggling to stay on track toward retirement and long-term financial goals, 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 (Allianz Life).

One in four Americans (25%) have a child under 18 and a living parent and are part of the ‘sandwich generation’ with the dual responsibility to care for their own children and aging parents. Nearly half of millennials (46%) and 18% of Gen Xers are part of the ‘sandwich generation.’

The vast majority of Americans in the ‘sandwich generation’ (78%) are providing their parents with either physical, financial or emotional support.

“Caring for both your young children and your aging parents can be overwhelming for both your time and your finances,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “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.”

Dual caregiving affecting retirement plans

This combination of responsibilities can affect Americans' long-term financial security. Three in four Americans in the ‘sandwich generation’ (75%) say it is hard for them to juggle their financial needs and goals because they are caring for their children and parents.

What’s more, 70% say taking care of both their child(ren) and parent(s) simultaneously has had a significant impact to their retirement plans. More than half of all Americans in the ‘sandwich generation’ (59%) say they have reduced or stopped contributing to their retirement savings account due to having to financially support both their children and parents.

“You won’t be able to care for others if you neglect yourself,” LaVigne says. “If you’re struggling to manage all your priorities, 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.”

This dual responsibility can be daunting. Most (76%) say providing care for everyone is almost like a full-time job. For many, having to care for aging parents and kids at the same time was unanticipated. The majority (60%) say they were not expecting or planning to give support to their parents at this time.

* 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+.

The Allianz Center for the Future for Retirement produces insights and research as a part of Allianz Life Insurance Company of North America.

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America (Allianz Life), one of the Ethisphere World’s Most Ethical Companies^®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2024, Allianz Life provided additional value to its policyholders via distributions of more than $18.6 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and indexed universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with more than 157,000 employees in nearly 70 countries. Allianz Life is a proud sponsor of Allianz Field^® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.

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