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Millennials Join Ranks of ‘Sandwiched’ Caregivers

By Michael S. Fischer

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What You Need to Know

  • The oldest millennials are caring for children and aging parents, and they're feeling the squeeze, a New York Life survey finds.
  • Nearly half of sandwich generation caregivers say they've fallen behind on essential expenses at some point in the past year.
  • Three-quarters of them say they're exploring financial products to cover their own long-term care needs.

American adults who provide care for both children and aging loved ones — the so-called sandwich generation — are more balanced in terms of gender than they were three years ago and now include the oldest millennials, according to survey results that New York Life reported Wednesday.

New York Life conducted the poll online between Aug. 31 and Sept. 10 among 1,003 sandwich generation adults, including those who provide care to an aging parent and one or more children. It noted that the release of the results comes at the beginning of National Family Caregivers Month.

Demographic Shift

The survey found that 45% of self-reported caregivers are women and 55% are men. That’s a big change from 2020, when 64% of self-reported caregivers were women and 36% were men. 

The survey also identified a generational shift in caregiving. In 2023, 66% of self-reported caregivers are millennials and 23% are Gen Xers; in 2020, 39% were millennials and 40% were Gen Xers. 

A quarter of sandwich generation adults in 2023 are Hispanic, up from 15% in 2020. 

Eighty-seven percent of respondents reported that they provide care for an aging relative and a child younger than 18, but 48% also care for an older child and 30% care for one with a chronic condition. In addition, 48% said they are caring for either their own or a family member’s grandchild.

As for the type of care the sandwich generation primarily provides to their aging relatives, 45% do so with financial support, another 45% run errands on their behalf and 44% prepare their meals. For older children, caregivers mainly provide financial and housing support.

“Our data show the demographic balance of the Sandwich Generation has shifted, as our population ages and more Millennials step into caregiving roles,” Suzanne Schmitt, head of financial wellness at New York Life, said in a statement. “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.” 

Caregiving Burden

Sandwich generation adults in the survey said they spend 50 hours per week caregiving, with female caregivers reporting higher emotional and mental strain and less financial confidence than men. 

The survey found that sandwich generation adults spend 22 hours per week providing care for their aging relative and 28 hours providing care for children younger than 18. That is 10 more hours per week than a typical 9-to-5 job, New York Life noted.

Nearly half of sandwich generation adults identified a time when their household was unable to meet essential expenses because of the costs of caregiving in the previous 12 months. 

Nine in 10 sandwich generation respondents said they have made a lifestyle change or financial decision because of caregiving responsibilities. Thirty-four percent cut back on other expenses, 26% contributed less or nothing to their emergency savings and 26% took on more debt.

Ninety-five percent of sandwich generation adults reported that caregiving has affected their personal finances, 47%; mental health/stress, 44%; or social life, 44%. 

Female caregivers in the survey feel less prepared than their male counterparts to continue providing financial support over the long term. While 72% of men said they would be able to provide the same level of care for their loved ones for at least another year before adjusting their financial plan, only 54% of women said the same. 

In fact, 14% of women said they would be able to provide at most only six additional months of care, compared with 3% of men. 

Women were also likelier than men to report that caregiving has affected various aspects of their lives, including their mental health/stress, personal time and romantic life. 

“Many Americans are not financially prepared for caregiving, which strains all areas of wellbeing and makes what can be a tough situation even tougher,” Schmitt said. “If half of your time each week is going to caregiving, how are you able to prepare healthy meals, schedule appointments, proactively manage investments, maintain personal relationships, get enough sleep, feel focused and productive at work, and plan for a secure financial future?” 

Complex Financial Picture

Fifty-one percent of sandwich generation participants reported that they have made a sacrifice to their own financial security to provide care, and 45% have credit card debt.

The survey found, however, that becoming a caregiver has prompted this group to plan for their own long-term care needs, with some three-quarters agreeing that the experience of caring for their aging relative has prompted them to buy or explore buying financial protection products. 

Forty-two percent said they are exploring options to prepare for their own long-term care needs, and 83% are considering purchasing additional financial protection products either now or in the future — with the top solutions in consideration being life insurance, long-term care insurance and income-protection insurance policies. 

To manage caregiving costs, 41% of sandwich generation members reported that they are paying out of their own budget, 28% are using the current employment income of the individual(s) they care for, and another 28% are withdrawing from an emergency savings account/rainy day fund. 

In the future, however, 34% said they would pay for the costs of caregiving out of their own budget, 28% will work more hours or overtime at their current job and 27% will use the savings or retirement funds of the individual(s) they care for.

Four in 10 of the sandwich generation respondents said they have made a financial decision they regret because of the mental strain from caregiving.

Forty-two percent of this group who have put aside money for their children to take care of them later if need be reported setting aside $43,136.67 on average.

“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,” Jeff Beligotti, head of long-term care solutions at New York Life, said in the statement.  “A trusted financial professional can help this generation navigate competing financial priorities and guide them towards considering tailored, protection-oriented solutions to safeguard themselves and loved ones now while strategizing for a prosperous financial future of their own.” 

Michael S. Fischer

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