Sandwich Generation

AAA

DEFINITION of 'Sandwich Generation'

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.

INVESTOPEDIA EXPLAINS '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. Boomernomics

    An investing strategy that involves buying equities directly ...
  2. Boomerang

    An American slang term that refers to an adult who has moved ...
  3. Dually Employed With Kids - DEWKS

    A household in which there are children and both partners earn ...
  4. Yupcap

    A slang term for a young urban professional who cannot afford ...
  5. Yuppie

    A slang term denoting the market segment of young urban professionals. ...
  6. Dual Income, No Kids - DINKS

    A household in which there are two incomes and no children (either ...
RELATED FAQS
  1. What does the American Dream mean to different generations?

    The American Dream at its core is the belief that every generation should enjoy greater prosperity than the generation before ... Read Full Answer >>
  2. What demographic trends are creating potential profits for insurance companies?

    Insurance companies can profit from demographic trends by marketing and writing specific policies suited to changes in the ... Read Full Answer >>
Related Articles
  1. Investing Basics

    The Seasons Of An Investor's Life

    From a tentative spring to a comfortable winter, learn how to weather the phases of your investing journey.
  2. Insurance

    Investing In Your Child's Education

    Overwhelmed by increasing tuition costs for your kids? The U.S. government can help.
  3. Options & Futures

    Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  4. Insurance

    Take Advantage Of Employer-Sponsored LTC Insurance

    Find out why 98% of employees are missing out on some great benefits.
  5. Budgeting

    Healthy Survival Guide For Sandwiched Boomers

    Caring for children and parents is squeezing baby boomers' finances. Find out how to cope.
  6. Economics

    What are Deliverables?

    Deliverables is a project management term describing an object or function that must be provided or completed by a certain due date.
  7. Investing Basics

    These Firms Are Tops Among Advisor Clients

    A new study shows that financial advisors, even at the most popular firms, aren't doing enough to strengthen ties to clients.
  8. Professionals

    A Look at How the Ultra-Wealthy Invest

    Ultra-wealthy investors are cautious this year as they approach the markets. Many target mutual funds and stocks, but most also diversify their portfolios.
  9. Economics

    What are Pork-Barrel Politics?

    Pork-barrel politics is a form of patronage whereby politicians favor their constituents in exchange for benefits such as campaign donations and votes.
  10. Professionals

    How Advisors Can Cater to Niche Clients

    A look at niche clients and how advisors specialize in them.

You May Also Like

Hot Definitions
  1. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  2. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  3. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  4. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  5. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  6. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!