Why longer lifespans demand new strategies for saving, health costs, and intergenerational support

Retirement planning has always been a balancing act, but for today’s sandwich generation, the stakes are higher than ever. These are adults, often in their 30s, 40s, and 50s, who are caring for aging parents and supporting children. While rewarding, this dual responsibility comes with a financial cost: many in the sandwich generation are reducing or halting their retirement contributions just when they should be maximizing savings.

At the same time, people are living longer than ever before. Advances in medicine, preventive care, and lifestyle awareness mean retirement may span 20, 30, or even 40 years. This combination of increased longevity and competing caregiving demands is reshaping how Americans must think about retirement and long-term health planning.

Who is the Sandwich Generation?

The term “sandwich generation” originally described middle-aged adults caught between raising children and caring for aging parents. But recent studies show that this challenge is no longer confined to Gen X. Millennials, and even some older Gen Z adults are beginning to feel the squeeze as multigenerational living becomes more common.

• A 2025 survey found that nearly 75% of sandwich-generation adults have adjusted their retirement goals to provide support for both children and parents.
• According to Newsweek, 59% have reduced or stopped contributing to retirement savings due to caregiving responsibilities.
• Industry experts note that what was once a Gen X phenomenon has now spread across younger generations as well.

This trend underscores a fundamental shift: intergenerational caregiving is no longer an exception, it’s becoming the norm.

The Financial Impact: Retirement on Hold

The financial strain of dual caregiving often forces tough trade-offs:

• Reduced savings: Many cut back on 401(k) or IRA contributions, losing years of compounding growth.
• Delayed retirement: Some push back retirement because they need a paycheck to cover current expenses.
• Early withdrawals: Others dip into savings prematurely, jeopardizing long-term security.
• Stress and planning delays: Juggling responsibilities leaves less time and energy for proactive financial management.

While these decisions may provide short-term relief, they carry long-term consequences. Missing even a few years of retirement contributions can significantly reduce the size of one’s nest egg, especially given rising healthcare and living costs.

Longer Lives, Bigger Challenges

The financial equation is complicated by a powerful demographic shift: longevity.

• Life expectancy has steadily risen, with many retirees now planning for 20–30+ years in retirement.
• Healthcare and long-term care costs are increasing, often outpacing inflation.
• Chronic conditions, while more manageable thanks to modern medicine, still require extended—and expensive—care.

The old model of working until 65 and enjoying a decade of retirement is outdated. Today’s retirees must prepare for decades of income replacement and higher medical expenses, even as they support their parents’ needs in real time.

Longevity Health Trends: Living Longer, Living Differently

It’s not all bad news. Many people are embracing longevity-focused lifestyles, aiming to extend not just lifespan but “health span.”

• Preventive care, better nutrition, and fitness are keeping people healthier into older age.
• Wearable tech, genetic testing, and personalized medicine are helping individuals proactively manage risks.
• New wellness trends are allowing people to remain active (and in the workforce) longer.

Still, longer lives bring added financial complexity. More years of life mean more years of costs, making proactive planning essential for the sandwich generation.

Building a New Plan for Retirement

So how can the sandwich generation adapt? Here are some strategies:

• Restart savings as soon as possible: Even small contributions, resumed early, can rebuild momentum.
• Establish separate emergency funds: This prevents caregiving expenses from derailing retirement accounts.
• Consider long-term care insurance or hybrid life/LTC policies: These can help manage rising healthcare expenses.
• Leverage tax-advantaged accounts: Health Savings Accounts (HSAs) help save for future medical costs on a tax-advantaged basis.
• Explore phased retirement or part-time work: This can provide income while easing into retirement.
• Work with a financial professional: Tailored guidance can help balance caregiving with future financial needs.

The sandwich generation is navigating one of the most complex financial landscapes in history. Caring for both children and aging parents while preparing for a longer retirement is no easy task, but it’s not impossible. With careful planning, the right tools, and an understanding of longevity’s impact, this generation can secure both their families’ well-being and their own financial future.

At RMC Group, we help clients create personalized retirement strategies that evolve with life’s changing responsibilities. From retirement planning to life insurance solutions that protect what matters most, our team is here to help you balance today’s needs with tomorrow’s goals.

Ready to build a flexible plan for your future? Schedule a retirement planning consultation with RMC Group and start turning life’s challenges into long-term opportunities.