- What's at Stake: Rising caregiving burdens threaten retirement readiness and workforce retention across sectors.
- Supporting Data: 59% of sandwich caregivers have reduced or stopped retirement contributions.
- Forward Look: Expect expanded eldercare leave, FSAs and caregiver navigation services adoption.
- Source: Bullets generated by AI with editorial review
Americans who are simultaneously raising young children and caring for aging parents —
A quarter of Americans have both a child under 18 and a living parent, placing them in this dual caregiving role, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement. The challenge is particularly acute among millennials, 46% of whom are part of the sandwich generation, compared with 18% of Gen Xers.
Nearly 78% are providing their parents with physical, financial or emotional support. The majority (76%) said caring for both generations feels like a full-time job, and 60% were unprepared for the level of parental support now required.
The financial toll is clear: 75% of sandwich generation workers say it's difficult to juggle their own goals with caregiving responsibilities, while 70% report the situation has had a significant impact on their retirement plans, according to the Allianz report. More than half (59%) have reduced or even stopped contributing to their retirement savings.
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"Caring for both your young children and your aging parents can be overwhelming for both your time and your finances," Kelly LaVigne, VP of Consumer Insights at Allianz Life, said in a release. "But forgoing your own retirement savings now can have costly consequences later on."
Retirement plans put on hold
This financial strain makes employer support critical. Benefit managers are in a unique position to ease some of the burden by providing resources that help
Expanding financial wellness programs is one way employers can help. Retirement readiness workshops, financial planning tools and access to certified financial professionals can guide employees through the challenges of balancing immediate caregiving costs with long-term saving. Tools like retirement calculators and scenario planning can also make the long-term impact of pausing contributions more tangible.
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Flexibility and leave policies are another key area of support. Extending paid family leave to include eldercare, not just childcare, can make a significant difference for employees navigating both responsibilities. Flexible scheduling or remote work opportunities can also give caregivers the space they need to manage family obligations without sacrificing their careers.
At Liberty Mutual, for example, the insurance company offers compressed workweeks, flex time and part-time roles to give caregivers the flexibility they need to manage work and family responsibilities. In addition, employees receive ten subsidized days annually for when they
"We recognize that success at work begins with strong wrap-around support," Verlinda DiMarino, head of benefits at Liberty Mutual, previously shared with EBN. "Without that support within the workplace, these employees are more likely to experience heightened stress and burnout, which can impact engagement and long-term retention."
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Dependent care benefits can also be broadened to address adult caregiving needs. Allowing dependent care FSAs to cover eldercare costs, where possible, can relieve some of the financial pressure. Employers can also leverage employee assistance programs or partnerships with eldercare navigation services to connect workers with vetted in-home support, adult day care, or respite care resources.
Finally, employers can create a more supportive culture by normalizing conversations around caregiving. Training managers to recognize and respond to caregiving challenges, along with establishing ERGs dedicated to caregivers, helps employees feel less isolated. These groups can provide peer support and make it easier to share information about community resources.
A call to action for benefit managers
LaVigne emphasizes the importance of keeping retirement savings on track despite caregiving pressures. Benefit managers can play a pivotal role by ensuring employees have access to flexible programs, financial guidance, and resources that allow them to care for their families and themselves.
"While you may feel it is your responsibility to care for everyone, it's important to keep your own best interest in mind for your long-term security," LaVigne said in the release.
