Americans balancing the needs of young children and aging parents are increasingly falling behind on retirement goals. The 2025 Annual Retirement Study from Allianz Life shows how dual caregiving is reshaping financial security for millions.
One in four Americans—25%—now belong to the “sandwich generation,” supporting both kids under 18 and at least one living parent. Nearly half of millennials, 46%, fit this description, along with 18% of Gen Xers.
The responsibilities are broad: 78% provide their parents with physical, financial, or emotional care.
- 75% say it is hard for them to juggle their financial needs and goals because they are caring for their children and parents
- 59% say they reduced or stopped contributing to their retirement savings account due to having to financially support both their children and parents
- 76% say providing care for everyone is almost like a full-time job
The sandwich generation refers to adults who provide care and support for both their aging parents and their own children simultaneously. These individuals are “sandwiched” between the financial, emotional, and physical demands of these two generations.
The term, first identified in the 1980s, describes a life stage rather than a specific birth cohort, as people move in and out of this situation as their circumstances change.
This dual responsibility can lead to significant stress, financial strain, and burnout for those in the sandwich generation
The strain bleeds directly into retirement planning. Three out of four say it’s difficult to manage personal financial goals while also covering family needs. Seventy percent report the dual role has significantly impacted their retirement strategies.
More than half, 59%, admit they’ve reduced or even stopped contributing to retirement accounts so they can support both children and parents.
“It’s overwhelming for both time and finances,” said Kelly LaVigne, VP of consumer insights at Allianz Life. “People feel responsible for everyone else, but neglecting your own savings now can have costly consequences later.”
He urged Americans in this position to work with financial professionals who can help balance immediate caregiving with long-term planning.
If you’re struggling to manage all your priorities, a financial professional can help you create a strategy to balance current responsibilities with your financial future. They may be able to suggest additional risk management strategies to incorporate into your financial plan to help ensure that your money lasts your lifetime.
Kelly LaVigne, VP of consumer insights at Allianz Life
For many, the challenge feels like a second job. Seventy-six percent say providing care on both ends of the family tree is almost full-time work.
6 in 10 weren’t expecting to be supporting parents at this stage of life, which adds another layer of surprise stress.
The Allianz survey, conducted early in 2025, underscores how demographic and financial pressures are colliding. Dual caregiving isn’t just emotional labor—it’s a growing risk to retirement security in the U.S.
Allianz Center for the Future of Retirement conducted an online survey, the 2025 Annual Retirement Study in 2025 with a nationally representative sample of 1,000 Respondents age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+
