Known colloquially as the "sandwich generation," many American adults in their 40s and 50s are finding themselves caring for both older and younger family members while also struggling to keep their own financial goals on track.
Many Americans in this age band particularly worry that they are falling behind on their retirement savings goal as a result of caregiving responsibilities and day-to-day financial obligations.
This is the topline finding of a new survey report published by Athene, which also shows that, over the last 50 years, the number of people living in multigenerational households has quadrupled. Today, the survey shows, many adults in their prime earning years share their homes with their parents or older relatives — as well as their adult children.
To better understand how the sandwich generation is navigating this life stage and what challenges it may be facing, Athene surveyed parents in their 40s and 50s supporting adult children and aging family members.
Among the group, Athene reports, there is a clear divide on whether offering financial support has affected their own retirement readiness. Specifically, just under half of respondents (47%) reported that they are putting off retirement savings to offer financial support to aging extended family or adult children, and nearly the same amount are tapping into their retirement assets to cover these expenses.
On the flip side, Athene finds, 45% of the group say that supporting their family has not significantly affected their retirement goals or plans for the future.
Across the board, maintaining their standard of living and not having enough assets to retire are among the top concerns identified by Athene's survey.
Financial Pressure From Above and Below
According to Athene's summary of the survey results, some 58% of households in this age bracket have adult children at home, and another 76% of individuals financially support them.
"Even with a vast majority of their children having a source of income, parents are helping with a variety of expenses," the report explains.
