Millennials Join Ranks of 'Sandwiched' Caregivers
Female caregivers in the survey feel less prepared than their male counterparts to continue providing financial support over the long term. While 72% of men said they would be able to provide the same level of care for their loved ones for at least another year before adjusting their financial plan, only 54% of women said the same.
In fact, 14% of women said they would be able to provide at most only six additional months of care, compared with 3% of men.
Women were also likelier than men to report that caregiving has affected various aspects of their lives, including their mental health/stress, personal time and romantic life.
“Many Americans are not financially prepared for caregiving, which strains all areas of wellbeing and makes what can be a tough situation even tougher,” Schmitt said. “If half of your time each week is going to caregiving, how are you able to prepare healthy meals, schedule appointments, proactively manage investments, maintain personal relationships, get enough sleep, feel focused and productive at work, and plan for a secure financial future?”
Complex Financial Picture
Fifty-one percent of sandwich generation participants reported that they have made a sacrifice to their own financial security to provide care, and 45% have credit card debt.
The survey found, however, that becoming a caregiver has prompted this group to plan for their own long-term care needs, with some three-quarters agreeing that the experience of caring for their aging relative has prompted them to buy or explore buying financial protection products.
Forty-two percent said they are exploring options to prepare for their own long-term care needs, and 83% are considering purchasing additional financial protection products either now or in the future — with the top solutions in consideration being life insurance, long-term care insurance and income-protection insurance policies.
To manage caregiving costs, 41% of sandwich generation members reported that they are paying out of their own budget, 28% are using the current employment income of the individual(s) they care for, and another 28% are withdrawing from an emergency savings account/rainy day fund.
In the future, however, 34% said they would pay for the costs of caregiving out of their own budget, 28% will work more hours or overtime at their current job and 27% will use the savings or retirement funds of the individual(s) they care for.
Four in 10 of the sandwich generation respondents said they have made a financial decision they regret because of the mental strain from caregiving.
Forty-two percent of this group who have put aside money for their children to take care of them later if need be reported setting aside $43,136.67 on average.
“Millennials are finding themselves sandwiched between responsibilities like caring for aging parents and milestones in their own life journeys, like starting their own families, purchasing a home and saving for retirement,” Jeff Beligotti, head of long-term care solutions at New York Life, said in the statement. “A trusted financial professional can help this generation navigate competing financial priorities and guide them towards considering tailored, protection-oriented solutions to safeguard themselves and loved ones now while strategizing for a prosperous financial future of their own.”
