Across the United States, millions of middle-aged adults struggle with the dual responsibilities of raising a child and caring for an aging parent. They are members of what is commonly called the sandwich generation. In fact, a 2020 report by New York Life found that 48% of the sandwich generation are expected to be in a caregiving position in some capacity for six or more years. 

The rise of the sandwich generation is a byproduct of two powerful trends: (1) women giving birth later in life, and (2) the increasing longevity of the U.S. population. When you combine these factors with a growing number of young adults living with their parents, it’s easy to see why so many middle-aged Americans are concerned about the future. If you are one of them, here are a few steps you can take to protect your loved ones and prepare for the financial responsibilities ahead

Have a plan for eldercare. 

Talk to your parents about the kind of care they’d prefer, and discuss it with your siblings. See which, if any, family members have the capacity to help provide care and which home would be the most accessible. In case external help is needed, research local resources to see what is available—and at what cost. Most importantly, consult an attorney and make sure you have all the legal documents needed to make sudden medical and financial decisions if the need arises.

Evaluate your resources.

Before determining a course of action, make sure you know what resources are available. Can your parents pay for care on their own? Do they have long-term care insurance? Do they own any whole life insurance policies with living benefits  that they may be able to use to pay for care? Can other family members contribute financially? Is public assistance a viable option? 

Protect your children’s lifestyle and future. 

While caring for a parent is a huge responsibility, it’s important to make sure your children’s needs and your own retirement needs are also met. If you haven’t done so already, set up a college fund and make funding it a priority. If your place of employment offers a 401(k), try to contribute the maximum amount allowable, and make sure you contribute at least enough to get the full company match. Also, consider purchasing a term or whole life insurance policy that can help to protect your family’s future in case anything tragic happens to you. 

Caring for children and aging relatives at the same time is never easy, but with the right planning and resources, it is possible to do both. With so many people joining the ranks of the sandwich generation, now’s the time to start planning for the future. 

1 “Millennials, Women ‘Sandwiched’ as COVID-19 Shifts Caregiving Responsibilities,” Insurance Journal, December 4, 2020. https://www.insurancejournal.com/news/national/2020/12/04/591396.htm. 

2  Loans against your policy accrue interest at the current rate and decrease the cash value and death benefit by the amount of the outstanding loan and interest. 

This educational third-party article is provided as a courtesy by Michael Damon, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Michael Damon at 508-321-2101.

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