A term once synonymous with Generation Xers, the “sandwich generation” is skewing even younger now.
A New York Life Wealth Watch survey found Millennials are increasingly playing the role of caregivers, both for aging parents and young children. In 2023, 66% of self-reported caregivers are Millennials and 23% are Gen Xers, compared to 2020, when 39% were Millennials and 40% were Gen Xers.
“Our data show the demographic balance of the Sandwich Generation has shifted, as our population ages and more Millennials step into caregiving roles,” said Suzanne Schmitt, head of Financial Wellness at New York Life. “As a society, we’ll need to consider how this is impacting our financial strategies and take action, especially as other challenges like student debt and inflation continue to impact not only how people spend, save, and work toward larger financial goals, but also their overall wellbeing.”
Increase in male caregivers
“As a society, we’ll need to consider how this is impacting our financial strategies and take action, especially as other challenges like student debt and inflation continue to impact not only how people spend, save, and work toward larger financial goals, but also their overall wellbeing.”
Suzanne Schmitt, New York Life
The demographic profile is leaning increasingly male, as well, found New York Life. In 2023, 55% of self-reported caregivers are men, compared to 45% of women—a telling difference compared to 64% women and 36% in 2020.
Despite the rise in male caregivers, New York Life found that women are still carrying a greater emotional burden and spending more hours per week caregiving than men.
On average, sandwich generation adults described spending 50 hours per week caregiving, with women caregivers noting a higher emotional and mental strain, and less financial confidence than men, reported New York Life.
Women caregivers were also likelier to feel unprepared to continue their financial support: 73% of men said they could afford the same level of care for at least another year, while 54% of women believed the same. Instead, 14% of women believe they will only be able to provide, at the most, six months more of care, compared to 3% of men.
Financial security and caregiving
Like sandwich generations of the past, almost all (90%) caregivers have reported making a lifestyle change or financial decision because of their caregiving responsibilities, including cutting back on expenses (34%), contributing less or nothing to emergency savings (26%), and taking on more debt (26%).
Over half (51%) say they’ve made a sacrifice to their own financial security to provide care, with 45% even going into credit card debt.
To manage caregiving costs, sandwich generation members are paying out of their own budget (41%), using the income from current employment of those they care for (28%), and withdrawing from an emergency savings account/rainy day fund (28%).
In the future, individuals expect they’ll pay for caregiving costs by paying out of their own budget (34%), working more hours/overtime at their current job (28%), or using the savings or retirement funds of those they care for (27%).
As a result of these financial sacrifices, and to break cycles for future generations, more are exploring options to prepare for their own long-term care needs one day. Eighty-three percent say they are considering purchasing financial protection products, including life insurance (45%), long-term care insurance (42%), and income protection insurance policies (36%).
Additionally, 42% of sandwich generation members have set aside money for their children to take care of them later if needed, with the average leaving behind $43,136.67.
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