Financial planning challenges and strategies for the sandwich generation

Published on

Almost half of all adults are part of the "sandwich generation." These are adults in their 40s and 50s who are helping support or care for a parent while also supporting or caring for a child.1

Being caught between two generations of loved ones who require care can be both financially and emotionally draining, but there are ways to reduce the pressure. Here are three financial planning challenges the sandwich generation is likely to face—and some strategies to address them.

Challenge: Having to provide daily care for a parent while working full-time.

Strategy: Research care options and alternatives.

There is often a lot of gray area between needing some help with daily activities and requiring round-the-clock care. If you find yourself visiting your parent one or more times each day to provide assistance, it is worth looking into home care options that can relieve some of this burden. From aides to home health nurses to companions, there are many providers who may be able to share some of the responsibilities you are shouldering.

What's more, these services are often available at low or no cost if your parent has Medicare, Medicaid, or VA insurance.

Challenge: Saving for retirement while having to step back from work to care for a parent.

Strategy: Meet with a financial professional.

Many members of the sandwich generation find themselves dropping out of the workforce so that they no longer have to schedule their caregiving duties around a full-time job. Unfortunately, this can sometimes come at the expense of their own retirement funds. By meeting with a financial professional, they can work with you to help develop financial goals, make any investment changes you need to, and begin to plan your retirement budget.

Challenge: Having adult children "boomerang" back into the nest.

Strategy: Maintain clear communication and expectations.

More young adults than ever are living with their parents. And while some parents are happy to have their children back in the nest (if they ever left), others are ready to be on their own. Having multiple adults sharing the same household can often lead to tension, especially if the adult children are not financially contributing to bills or doing their part to clean and care for the house.

The easiest way to avoid resentment is to make expectations clear at the outset and maintain clear lines of communication. Some parents may expect their children to pay rent or make some other financial contributions to the household; others may urge their children to save as much money as possible so that they can move out. Whatever the goals and expectations are, ensuring that everyone is on the same page when it comes to your financial support can go a long way toward avoiding conflict.

Though it can be stressful to be part of the sandwich generation, there are ways to manage this stress and maintain strong relationships with your parents and your children. With some careful planning, you should be able to manage the needs of all three generations.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05283802

1Family Caregiving Challenges for the Sandwich Generation, The Arbors,

You may also like


10 practical home-buying tips to write home about

Thinking of purchasing your first home? Or finding a new house with more space? With inflation on the rise, market conditions are evolving which could impact your home purchasing decisions.

Interest rates are likely to increase


Mortgage shopping tips

If you're shopping for a mortgage, we'd love to help. Here are some tips we've compiled to get you started:

1. Know the difference between a mortgage lender (like Webster) and a mortgage broker

Mortgage brokers do not lend money;…


Know before you owe: mortgage and home equity key drivers

When applying for a mortgage or home equity loan or line, there are some equations that come into play. Here are the most common factors that will be calculated to determine your credit worthiness. 

Loan to Value

Loan to…

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.


Securities and insurance offered through LPL or its affiliates are:

Not Insured by FDIC or Any Other Government Agency

Not Bank Guaranteed

Not Bank Deposits or Obligations

May Lose Value

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Webster Bank and Webster Investments are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Webster Investments, and may also be employees of Webster Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Webster Bank or Webster Investments.

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

The Webster Symbol is a registered trademark in the U.S.