Employees of different generations have different financial struggles. Recent grads may struggle with student debt, while older individuals may focus on building a solid retirement plan. But what about employees in between?

This section of the workforce is aptly labelled “the sandwich generation,” and represents working adults caught in a unique and challenging life stage. Usually between ages 40 and 60, these employees both care for aging parents while supporting their own children. Members of the sandwich generation are responsible for overwhelming responsibilities that may impact their financial well-being.

This phenomenon has been around since the 1980s, but has only grown since then. Parents are deciding to have their children at later stages in their lives, while lifespans for older individuals are increasing. In addition, according to the census, nearly 1 in 3 adults aged 18 to 34 lives with their parents, which adds to their caregiving burden. This is an issue that is likely affecting your workforce in unforeseen ways.

Here are three insights you should know about the sandwich generation.

The burden on employees in the sandwich generation is significant

The financial and emotional challenges facing the sandwich generation are far-reaching. According to a survey conducted by Wakefield Research, a staggering 72% of caregivers report having to make difficult financial sacrifices that impact their quality of life.

These sacrifices are not trivial choices but critical decisions about survival and support. An AARP survey found that American caregivers provide nearly $600 billion in unpaid care annually, not to mention the additional time investment. Individually, this rounds out to $61,000 in caregiving expenses annually for the average family. These costs include food, medical supplies, home modifications and medicine.

Many are forced to cut back on essential expenses, depleting their carefully saved retirement and personal savings just to meet the immediate needs of their families. Some even reduce medical care expenses, putting their own health at risk to support their loved ones.

As a result, half of all caregivers experience increased emotional stress, with the constant pressure of supporting two generations creating a taxing state of anxiety, overwhelm and burnout. Physical stress impacts 37% of caregivers, resulting in health issues directly related to the demanding nature of their responsibilities. The persistent nature of this stress is evident in a startling statistic: 40% of caregivers rarely or never feel truly relaxed. The mental health implications are severe, with 56% struggling to maintain their psychological well-being and 41% reporting feelings of profound loneliness.

Caregiving often comes at the cost of career opportunities

However, the professional consequences of being in the sandwich generation extend far beyond personal stress. More than half (53%) of working caregivers have made significant career sacrifices, often stepping back from professional opportunities or reducing their work commitments. Retirement planning has become a luxury many cannot afford, with 42% delaying their retirement plans to meet immediate family needs.

Their commitment is further illustrated by the fact that 40% would willingly take a pay cut to gain more flexibility for caregiving responsibilities. In fact, 15% of working caregivers are considering leaving their jobs entirely in the next six months to focus exclusively on caregiving.

Employers have a responsibility to provide support to those in the sandwich generation

For organizations, supporting employees in the sandwich generation is not just an act of compassion — it’s a critical business strategy to improve retention and workforce well-being. Employees experiencing such intense personal pressures are at high risk of reduced productivity, increased absenteeism, higher stress and burnout.

To support your sandwich generation employees, consider these targeted benefits.

Flexible work arrangements: Traditional work models can no longer accommodate the complex lives of sandwich generation employees. It is imperative to offer remote work options that allow employees to manage caregiving responsibilities, providing flexible scheduling that recognizes their multiple commitments.

Financial wellness programs: Comprehensive financial support goes beyond traditional benefits. Offering financial planning educational resources helps employees navigate their complex financial landscapes. Dedicated caregiver support resources and emergency savings programs can provide a critical safety net for those managing multi-generational responsibilities. Budgeting tools and catered financial content also can help workers plan for the future with the best information.

Mental health support: Recognizing the profound emotional toll of caregiving, employers should provide comprehensive mental health coverage. This includes counseling services specifically tailored to caregivers, stress management workshops that provide coping strategies and support groups that create communities.

Comprehensive insurance options: Insurance benefits must evolve to meet the complex needs of the sandwich generation. This includes extended family care insurance, flexible spending accounts for dependent care, and health insurance options that cover multi-generational care needs.

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Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal. 

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!