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New research from Rathbones, one of the UK’s leading wealth and asset management groups, shows that one in 10 people (11%) in this cohort, typically older millennials and Generation X, are either currently or expect to be funding both their children’s university costs and day-to-day living and care expenses for ageing parents.
This balancing act is taking a significant toll with two-thirds (65%) saying it is putting significant pressure on their finances.
As a result, many are being forced to scale back their spending. Over two-fifths (43%) have cut holidays while more than a quarter (27%) have put home improvement plans on hold.
The impact extends well beyond lifestyle choices and is increasingly reshaping long-term planning and retirement outlooks:
- Almost a quarter (23%) have reduced pension contributions
- Over a third (36%) have cut back on long-term savings and investments
- 60% now expect to delay retirement.
Malvee Vaja, Financial Planner at Rathbones, said: “For the sandwich generation, long-term financial planning is increasingly about compromise. Trying to prioritise immediate needs such as education and care costs can come at the expense of longer-term financial security.
“Too often, this results in difficult financial trade-offs as those in the sandwich generation try to simultaneously support both younger and older family members.
“The fact that so many are considering or have already reduced pension contributions or delayed retirement highlights just how real this pressure has become.
“Even once they reach retirement, these concerns don’t disappear. Many people find themselves holding back on spending the pension they have spent their career building due to fears about the potential cost of education and later-life care.”
