Many Australians are finding themselves part of the “sandwich generation” – adults who are juggling the demands of raising their own children while also caring for ageing parents. It’s a tough spot to be in, emotionally and financially.

Whether you’re still working and trying to build your own wealth, or you’ve recently retired and expected to finally enjoy some freedom, the reality of being pulled in both directions can stretch your time, energy and finances.

What is the sandwich generation?

The sandwich generation refers to people – often in their 40s, 50s or even 60s – who are “sandwiched” between caring for their children (sometimes adult children still living at home) and their elderly parents who may need help with transport, health care or day-to-day support.

This role often comes without warning. A parent might suddenly fall ill. A child may lose a job or return home after a breakup. Suddenly, you’re responsible for more than just your own needs.

The financial impact

Caring for others takes a toll on your finances. If you’re still working, you might reduce your hours, knock back a promotion, or even leave work altogether to support a parent – especially if they want to stay at home rather than go into aged care.

This can mean:

• Less superannuation going into your fund
• Lower overall savings
• Fewer opportunities to pay down debt or build wealth

Even if you’ve already retired, your resources may be stretched. That overseas holiday you dreamed of might be replaced with fuel costs for daily visits to mum or dad, or paying for carers and medication out of your own pocket.

Some adult children even dip into their own retirement savings to cover costs, which can leave them short down the track.

What you can do

While everyone’s situation is different, here are a few tips to help you manage:

1. Talk about money early – it might feel awkward, but open conversations with your parents (and children) about finances are essential. 

Find out:

• Do your parents have savings, super, or aged care plans?
• Do they qualify for Centrelink or aged care subsidies?
• Can your children contribute to household costs?

The sooner you understand the financial picture, the easier it is to make a plan.

2. Get help navigating aged care – the aged care system can be complex. If your parent needs more support, it’s worth getting advice to understand what services and payments are available.

You might be surprised by how much help is out there, including subsidised in-home care or respite services to give you a break.

3. Look after your own future – it’s natural to want to help your family, but don’t forget your own needs. If you’re still working, keep your super contributions going if possible. If you’re retired, review your budget and spending regularly to avoid running out of funds too soon.
4. Ask for support – don’t try to do it all alone. Speak to siblings about sharing the load, reach out to community organisations, and lean on your GP or counsellor if you’re feeling burnt out. You can’t pour from an empty cup.

Need help?

If you’re feeling the financial squeeze of being in the sandwich generation, we’re here to help. Whether it’s budgeting, retirement planning, or navigating aged care options, contact us for guidance tailored to your situation. A good plan can make a big difference.