Sandwich Generation

What is the 'Sandwich Generation'

The sandwich generation is the generation of middle-aged individuals who are pressured to support both aging parents and growing children. The sandwich generation is named so because they are effectively "sandwiched" between the obligation to care for their aging parents - who may be ill, unable to perform various tasks or in need of financial support - and children, who require financial, physical and emotional support. The trends of increasing lifespans and having children at an older age have contributed to the sandwich generation phenomenon.

BREAKING DOWN 'Sandwich Generation'

A 2005 Pew Center study estimated that one in eight Americans between the ages of 40 and 60 are simultaneously providing some financial assistance to both a child and a parent. The obligations placed on the sandwich generation demand considerable time and money. With the added pressures of managing one's own career and personal issues, as well as the need to contribute to one's own retirement, the individuals of the sandwich generation are under significant stress. In some cases, these baby boomers are having to postpone their own retirements because of the added financial obligations. Also, some members of the sandwich generation are further overextended by caring for their grandchildren.

RELATED TERMS
  1. Stick Sandwich

    A technical trading pattern in which three candlesticks form ...
  2. Sandwich Lease

    A lease in which a party rents property from the property owner ...
  3. Kids In Parents' Pockets Eroding ...

    A slang term referring to adult children who are out of school ...
  4. Generation X (Gen-X)

    Generation X or Gen-X is the name given to the generation of ...
  5. Generational Accounting

    An accounting method that considers how current fiscal policies ...
  6. Boomerang

    An American slang term that refers to an adult who has moved ...
Related Articles
  1. Retirement

    How To Parent Your Aging Parents

    For sandwich generation, planning ahead is key to good elder care.
  2. Financial Advisors

    Top Tips for Family Wealth Transfers

    Essential tips for tackling family wealth transfers.
  3. Financial Advisors

    Top Financial Planning Issues for Older Parents

    Clients who have children later in life present an opportunity for advisors. Here are the key the financial planning issues that need to be addressed.
  4. Retirement

    7 Essential Questions To Ask Aging Parents About Their Finances

    No one wants to think about the aging of his or her parents, let alone plan for their death. Unfortunately, aging is a part of life, and in order to truly support your parents, it's best to start ...
  5. Your Clients

    How to Win Gen X Clients

    Less numerous than the two generations they're sandwiched between, Gen X clients will still be a lucrative group for advisors. Here's how to snag them.
  6. Retirement

    Are Your Children Destroying Your Retirement?

    I can still remember the days when the term "generation gap" was all the rage, back in the late 1960s and early 1970s.
  7. Financial Advisors

    Parents: Avoid This Retirement Savings Mistake

    Parents should make saving for their own retirement a priority over helping with their children’s college costs.
  8. Active Trading Fundamentals

    Behavioral Finance: Key Concepts - Mental Accounting

    By Albert PhungKey Concept No.2: Mental AccountingMental accounting refers to the tendency for people to separate their money into separate accounts based on a variety of subjective criteria, ...
  9. Financial Advisors

    How to Protect Retirement and Help Adult Kids

    Parents can both protect their retirement money and help their adult kids. Here's how.
  10. Financial Advisors

    How Advisors Can Help Expectant Couples

    Bringing a child into the world makes parents more acutely aware of their finances. Here's how advisors can help expectant couples prepare.
RELATED FAQS
  1. What role do transaction costs play in marginal utility analysis?

    Read about the impact of transaction costs in marginal utility analysis and why economic decisions are not always simply ... Read Answer >>
  2. How do I implement a forex strategy when spotting a Stick Sandwich Pattern?

    Learn about the stick sandwich and how to use this reversal pattern in conjunction with other technical indicators to create ... Read Answer >>
  3. How effective is creating trade entries after spotting a Stick Sandwich pattern?

    Learn the basics of the stick sandwich candlestick pattern and how to utilize this pattern to establish effective trade entry ... Read Answer >>
  4. How do I build a profitable strategy when spotting a Stick Sandwich pattern?

    Understand how to use the stick sandwich candlestick pattern to create profitable trade strategies, including optimal setup ... Read Answer >>
  5. Are Social Security survivor benefits for children considered taxable income?

    Learn why receiving Social Security survivor benefits on behalf of children does not affect income tax for a surviving parent ... Read Answer >>
  6. What does the American Dream mean to different generations?

    Find out what has caused the American Dream to change radically from the Baby Boom generation to the members of Generation ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center