The "sandwich generation" refers to the growing population of employees who are supporting both parents and children. This dual responsibility creates significant financial burdens and can impact employees' overall wellbeing.
According to the Pew Research Center, many caregivers provide at least 21 hours of unpaid care per week, and nearly 23% of U.S. adults are part of the sandwich generation. Understanding the unique challenges faced by this group is crucial for employers to support their workforce. By offering trusted financial wellbeing suport, companies can help alleviate some of these burdens, leading to a more engaged and productive workplace.
As employee populations age, financial stress for the sandwich generation will inevitably increase. This stress includes the direct costs of care, saving for children’s education, helping parents prepare for retirement, along with the complexities of managing the employee's own finances.
Data from AARP highlights that the average family caregiver spends about $7,242 annually out-of-pocket to care for an aging loved one, significantly impacting their financial wellbeing and ability to balance their own day-to-day expenses and long-term financial goals.
Workplace financial wellbeing programs are uniquely designed to support employees in managing their entire financial picture more effectively. For the sandwich generation, a trusted financial wellbeing program can be a critical lifeline, providing education, resources, tools and guidance to navigate their unique financial challenges.
Financial Education: Programs offering lessons and workshops on budgeting, saving, and investing can help employees make informed decisions. For the sandwich generation, understanding how to balance current expenses with long-term savings goals is critical.
Retirement Planning: Providing trusted guidance on retirement planning helps employees prepare for their own futures and equips them to assist their parents and dependents. Many sandwich generation members are involved in their parents’ retirement planning, making this a vital area of support.
College Savings Support: Education around programs that help employees save for their children’s education, such as 529 plans, can reduce the financial pressure on sandwich generation employees. These plans offer tax advantages and can be a key part of their comprehensive financial strategy.
Estate Planning: Access to resources and support for employees caring for aging parents can alleviate some of their many burdens. This includes information on elder care, estate planning, power or attorney, and more.
Employers will need to quickly evolve to meet the growing and changing needs of the sandwich generation. This includes incorporating programs to offer personalized financial guidance, increasing accessibility to financial planning for employees of all income and asset levels, and providing ongoing support tailored to the unique challenges of caring for both children and aging parents.
According to a recent study from Buck, 76% of employees report that having access to financial wellbeing programs tailored to their specific needs is crucial. This underscores the importance of implementing programs and continually adapting them to drive outcomes.
As financial pressures increase and the complexities of managing dual caregiving responsibilities grow, financial wellbeing programs can provide crucial support. With access to trusted financial guidance, sandwich generation employees can achieve greater financial stability and peace of mind.