For many American adults, retirement is beginning to feel even more out of reach. Not only are consumers today grappling with increased prices in a time of economic struggle but are also taking on the financial responsibility of taking care of loved ones, both younger and older — making it nearly impossible to financially support their own aspirations.
According to data from Credit Karma’s latest research study, half of Americans who financially support their children and parents (or other older relatives) are being prevented from living the life they want to live. The study, which included a survey by Qualtrics on behalf of Credit Karma, interviewed U.S. adults ages 18 and older who currently provide financial support to their children and parents/relatives, aimed to understand the financial burden and ramifications of what has been named the “sandwich generation.”
“While not a new circumstance, America’s ‘sandwich generation’ may be growing in numbers as more people prolong starting families, life expectancy has increased over recent decades, and ‘failure to launch’ becomes the status quo for a number of young adults,” said Courtney Alev, consumer financial advocate at Credit Karma. “The financial burden this camp of people faces is undeniable [and] it’s not just their wallets taking a hit — members of the ‘sandwich generation’ also report experiencing a lower quality of life, dashed career aspirations and suffering relationships with friends, romantic partners and even their own children.”
Over half of the survey’s respondents said that they feel “disadvantaged financially” given the financial support that they are providing their family members — this sentiment was shared by a higher 61 percent of those respondents whose children they support are over 18 years old. Considering the responsibilities that this cohort now holds, 40 percent of respondents told the company that they “regret not starting a family sooner to avoid the overlap in financially supporting and caring for both their kids and parents.”
To make ends meet, Americans of the “sandwich generation” said they have been unable to save money (60 percent), have not gone on vacations or bought things for themselves (40 percent) and have neglected their physical and mental health (36 percent).
Survey respondents told the company that supporting adult children, in particular, has exacerbated not only financial hardship but resentment as well. More than half (62 percent) of respondents who fall into this cohort said that “it feels impossible to make any financial progress at this stage in their life” — compared to 55 percent of those who had children under 18. Forty-four percent of respondents said they feel resentful about their current financial obligations and the impact coming from supporting their families.
Across all respondents, nearly 70 percent said that they feel an obligation to support their family financially.
In terms of the practical ramifications of supporting and older and younger generation simultaneously, nearly half (47 percent) of consumers said that their quality of life has suffered. Many respondents told the company that they had made life-changing sacrifices to support their families including 43 percent who gave up careers to be able to care for their family members. Just over half (52 percent) also said that the additional financial pressures have hindered personal relationships.
Looking ahead, members of the “sandwich generation” expect to make more sacrifices, including needing to cut back in order to help children pay for education costs or pay for a wedding. Forty-seven percent said that they predict that the burden will fall to their children in time.
