The report includes three key sections:
Shifts in Caregiving Place the Burden on Women, Millennials and Emerging Majority Populations
- When it comes to caring for both an aging parent and children, nearly two-thirds (64%) are women and over one-third (39%) are Millennials.
- Latinx caregivers (34%) are most likely to spend higher-than-average time providing care for loved ones, followed by Black caregivers (29%), and white Millennial family caregivers (20%).
The Financial Cost of Caregiving
- On average, the cost of caring for an aging relative is about $1,000 per month, with 54% of those in the Sandwich Generation reporting spending more than usual per month to care for others as a result of the pandemic.
- Almost 7 out of 10 (69%) of Sandwich Generation members are paying for this care out of their own daily budgets; 40% are contributing less to their saving, 30% are contributing less to their retirement.
- While nearly half of the Sandwich Generation (46%) have $50,000 or more in investments, one-quarter (23%) have no financial investments at all.
Long-Term Expectations for the Sandwich Generation
- Nearly half (48%) of all members of the Sandwich Generation expect to be in a caregiving position in some capacity for six or more years, yet one-in-four (22%) report they would need to adjust their financial strategies within the next 12 months.
- The research shows that those who reported feeling prepared to provide six or more years of care with no adjustments were more likely to be working with a financial professional.
“Members of the Sandwich Generation have always been stretched thin, but COVID-19 has undoubtedly exacerbated the stress this group is facing,” said Dylan Huang, Head of Retail Annuities, Investment Solutions and Wealth Planning, New York Life. “Despite a wide gap between those who may be prepared to be caretakers for several years and those who may need to adjust their financial strategies sooner, the outlook is not all dark skies. This report shows that those working with financial professionals are able to improve their financial well-being and feel more confident about their financial solutions, their family’s future, and their own retirement.”
For a more in-depth look at the Sandwich Generation and New York Life’s findings, click here to access the report.